0000086521-19-000014 | 10-K | XBRL Viewer

ACQUISTION AND DIVESTITURE ACTIVITY (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table sets forth the allocation of the total purchase price paid to the identifiable assets acquired and liabilities assumed.



PURCHASE PRICE ALLOCATION
(Dollars in millions)
	At March 9, 2018⁽¹⁾
Assets acquired:
Accounts receivable – other, net	$	1
Due from unconsolidated affiliates	46
Investment in Oncor Holdings	9,227
Deferred income tax assets	287
Other noncurrent assets	109
Total assets acquired	9,670

Liabilities assumed:
Other current liabilities	23
Pension and other postretirement benefit plan obligations	21
Deferred credits and other	58
Total liabilities assumed	102
Net assets acquired	$	9,568
Total purchase price paid	$	9,568


⁽¹⁾	In the fourth quarter of 2018, we received additional information regarding deferred income taxes related to

the resolution of claims in EFH’s emergence from bankruptcy as of the acquisition date. As a result, we

recorded an adjustment to increase our investment in Oncor Holdings by $64 million, decrease deferred

income tax assets by $66 million and decrease deferred credits and other liabilities by $2 million. Also

in the fourth quarter of 2018, we recorded $2 million of additional purchase price paid related to additional

transaction costs.The following table summarizes the fair value of the CTNG business combination and the preliminary purchase price allocation of the assets acquired and liabilities assumed at the date of acquisition:



PRELIMINARY PURCHASE PRICE ALLOCATION
(Dollars in millions)
	At December 18, 2018
Assets acquired:
Cash and cash equivalents	$	18
Other assets	5
Other intangible assets	46
Property, plant and equipment	162
Total assets acquired	231

Liabilities assumed:
Other current liabilities	1
Deferred income taxes	42
Total liabilities assumed	43
Total identifiable net assets acquired	188
Goodwill	38
Total purchase price paid	$	226

Schedule of Proforma Information Table

The following table represents unaudited pro forma information for the years ended December 31, 2018 and 2017, combining the historical results of operations of Sempra Energy and CTNG as though the acquisition occurred on January 1, 2017. 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 would expect going forward.



UNAUDITED PRO FORMA INFORMATION – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Years ended December 31,
	2018		2017
Total revenues	$	11,703	$	11,224
Net income	1,130		356
Earnings attributable to common shares	928		261

Schedule of Business Acquisitions Table

The following table summarizes the total fair value of the 2016 business combinations at Sempra Mexico, described below, and the final purchase price allocations of the assets acquired and liabilities assumed at the dates of acquisition:



PURCHASE PRICE ALLOCATIONS
(Dollars in millions)
	IEnova Pipelines		Ventika
	At September 26, 2016⁽¹⁾		At December 14, 2016⁽²⁾
Fair value of business combination:
Cash consideration (fair value of total consideration)	$	1,144	$	310
Fair value of equity interest in IEnova Pipelines immediately prior to acquisition	1,144		—
Total fair value of business combination	$	2,288	$	310

Assets acquired:
Cash and cash equivalents	$	66	$	—
Restricted cash	—		68
Accounts receivable	39		14
Other current assets	6		1
Other intangible assets	—		154
Deferred income taxes	—		36
Regulatory assets	33		—
Property, plant and equipment	1,248		673
Other noncurrent assets	1		3
Total assets acquired	1,393		949

Liabilities assumed:
Short-term debt	—		125
Accounts payable	11		1
Due to unconsolidated affiliates	3		—
Current portion of long-term debt	49		7
Fixed-price contracts and other derivatives, current	6		4
Other current liabilities	20		8
Long-term debt	315		478
Asset retirement obligations	5		2
Deferred income taxes	127		120
Fixed-price contracts and other derivatives, noncurrent	19		10
Other noncurrent liabilities	11		—
Total liabilities assumed	566		755
Total identifiable net assets acquired	827		194
Goodwill	1,461		116
Total fair value of business combination	$	2,288	$	310

⁽¹⁾

During the fourth quarter of 2016, we received additional information regarding IEnova Pipelines’ deferred income taxes as of the acquisition date, primarily related to basis differences in IEnova Pipelines’ PP&E. As a result, we recorded measurement period adjustments that resulted in a net increase to goodwill of $86 million, an increase in deferred income tax liabilities of $119 million and $33 million of regulatory assets related to deferred income taxes on AFUDC.

⁽²⁾

During the fourth quarter of 2017, we received additional information regarding Ventika’s deferred income taxes as of the acquisition date, primarily related to net operating loss carryforwards. As a result, we recorded a measurement period adjustment that resulted in a decrease to goodwill and an increase in deferred income tax assets of $13 million.

Schedule Of Assets Held for Sale and Deconsolidation of Subsidiaries Table

The following table summarizes the deconsolidation of certain subsidiaries that have been sold in 2018 and 2016, as we discuss below:



DECONSOLIDATION OF SUBSIDIARIES
(Dollars in millions)
	Certain subsidiaries of Sempra Renewables			EnergySouth
	At December 13, 2018			At September 12, 2016
Proceeds from sale, net of transaction costs	$	1,585		$	304
Cash	(7		)	(2		)
Restricted cash	(7		)	—
Other current assets	(14		)	(17		)
Property, plant and equipment, net	(1,303		)	(199		)
Other investments	(329		)	—
Goodwill	—			(72		)
Other noncurrent assets	(24		)	(65		)
Current liabilities	8			25
Long-term debt	70			67
Asset retirement obligations	52			—
Other noncurrent liabilities	5			89
Noncontrolling interests	486			—
Accumulated other comprehensive income	(9		)	—
Gain on sale	$	513		$	130

The carrying amounts of the major classes of assets and related liabilities classified as held for sale associated with Sempra Renewables and Sempra LNG & Midstream are summarized in the following table.



ASSETS HELD FOR SALE AT DECEMBER 31, 2018
(Dollars in millions)
	Sempra Renewables		Sempra LNG & Midstream
Cash and cash equivalents	$	7	$	—
Accounts receivable – trade, net	2		5
Accounts receivable – other, net	1		—
Other current assets	1		6
Property, plant and equipment, net	366		324
Other noncurrent assets	—		1
Total assets held for sale	$	377	$	336

Accounts payable – trade	$	2	$	2
Other current liabilities	4		3
Asset retirement obligations	6		8
Total liabilities held for sale	$	12	$	13

- Definition

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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+ Details

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

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

^[1]

Dec. 31, 2016

^[1]

Revenues

Energy-related businesses

$ 1,641,000,000

$ 1,431,000,000

$ 922,000,000

Utilities

10,046,000,000

9,776,000,000

9,261,000,000

Total revenues

11,687,000,000

11,207,000,000

10,183,000,000

Operating expenses

Operation and maintenance

(3,309,000,000)

(3,096,000,000)

(2,976,000,000)

Depreciation and amortization

(1,549,000,000)

(1,490,000,000)

(1,312,000,000)

Franchise fees and other taxes

(472,000,000)

(436,000,000)

(426,000,000)

Write-off of wildfire regulatory asset

(351,000,000)

Impairment losses

(1,122,000,000)

(72,000,000)

(153,000,000)

Gain on sale of assets

524,000,000

3,000,000

134,000,000

Operating expenses

Impairment losses

1,122,000,000

72,000,000

153,000,000

Write-off of wildfire regulatory asset

351,000,000

Remeasurement of equity method investment

617,000,000

Other income, net

72,000,000

233,000,000

138,000,000

Interest income

104,000,000

46,000,000

26,000,000

Interest expense

(925,000,000)

(659,000,000)

(553,000,000)

Income before income taxes

1,046,000,000

1,551,000,000

1,824,000,000

Income tax expense

(96,000,000)

(1,276,000,000)

(389,000,000)

Equity earnings

176,000,000

76,000,000

84,000,000

Net income

1,126,000,000

351,000,000

1,519,000,000

(Earnings) losses attributable to noncontrolling interest

(76,000,000)

(94,000,000)

(148,000,000)

Preferred stock dividends

(125,000,000)

Preferred dividends of subsidiary

(1,000,000)

Earnings attributable to common shares

$ 924,000,000

$ 256,000,000

$ 1,370,000,000

Earnings Per Share, Basic [Abstract]

Basic earnings per common share (in dollars per share)

$ 3.45

$ 1.02

$ 5.48

Weighted-average number of shares outstanding, basic (in shares)

268,072

251,545

250,217

Earnings Per Share, Diluted [Abstract]

Diluted earnings per common share (in dollars per share)

$ 3.42

$ 1.01

$ 5.46

Weighted-average number of shares outstanding, diluted (in shares)

269,852

252,300

251,155

San Diego Gas and Electric Company [Member]

Revenues

Electric

$ 4,003,000,000

$ 3,935,000,000

$ 3,754,000,000

Regulated Operating Revenue, Gas

565,000,000

541,000,000

499,000,000

Utilities

4,568,000,000

4,476,000,000

4,253,000,000

Operating expenses

Write-off of wildfire regulatory asset

(351,000,000)

Operating expenses

Cost of electric fuel and purchased power

1,370,000,000

1,293,000,000

1,187,000,000

Cost of natural gas

152,000,000

164,000,000

127,000,000

Operation and maintenance

1,058,000,000

1,024,000,000

1,062,000,000

Depreciation and amortization

688,000,000

670,000,000

646,000,000

Franchise fees and other taxes

290,000,000

265,000,000

255,000,000

Write-off of wildfire regulatory asset

351,000,000

Total operating expenses

3,558,000,000

3,767,000,000

3,277,000,000

Operating income

1,010,000,000

709,000,000

976,000,000

Other income, net

56,000,000

70,000,000

64,000,000

Interest income

4,000,000

Interest expense

(221,000,000)

(203,000,000)

(195,000,000)

Income before income taxes

849,000,000

576,000,000

845,000,000

Income tax expense

(173,000,000)

(155,000,000)

(280,000,000)

Net income

676,000,000

421,000,000

565,000,000

(Earnings) losses attributable to noncontrolling interest

(7,000,000)

(14,000,000)

5,000,000

Earnings attributable to common shares

669,000,000

407,000,000

570,000,000

Southern California Gas Company [Member]

Revenues

Utilities

3,962,000,000

3,785,000,000

3,471,000,000

Operating expenses

Impairment losses

(22,000,000)

Operating expenses

Cost of natural gas

1,048,000,000

1,025,000,000

891,000,000

Operation and maintenance

1,613,000,000

1,474,000,000

1,391,000,000

Depreciation and amortization

556,000,000

515,000,000

476,000,000

Franchise fees and other taxes

154,000,000

144,000,000

140,000,000

Impairment losses

22,000,000

Total operating expenses

3,371,000,000

3,158,000,000

2,920,000,000

Operating income

591,000,000

627,000,000

551,000,000

Other income, net

15,000,000

31,000,000

38,000,000

Interest income

2,000,000

1,000,000

Interest expense

(115,000,000)

(102,000,000)

(97,000,000)

Income before income taxes

493,000,000

557,000,000

493,000,000

Income tax expense

(92,000,000)

(160,000,000)

(143,000,000)

Net income

401,000,000

397,000,000

350,000,000

Preferred stock dividends

(1,000,000)

Earnings attributable to common shares

400,000,000

396,000,000

349,000,000

Cost of electric fuel and purchased power [Member]

Operating expenses

Operating expenses

(2,323,000,000)

(2,281,000,000)

(2,188,000,000)

Cost of natural gas [Member]

Operating expenses

Operating expenses

(1,208,000,000)

(1,190,000,000)

(1,067,000,000)

Cost of natural gas, electric fuel and purchased power [Member]

Operating expenses

Operating expenses

(355,000,000)

(339,000,000)

(277,000,000)

Other cost of sales [Member]

Operating expenses

Operating expenses

$ (78,000,000)

$ (24,000,000)

$ (322,000,000)

[1]	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1.

CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Property, plant and equipment, net related to VIE	$ 295	$ 321
Current portion of long-term debt	1,673	1,427
Long-term debt, VIE	$ 190	$ 284
Stockholders' Equity Attributable to Parent [Abstract]
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares authorized (in shares)	750,000,000	750,000,000
Common stock, shares outstanding (in shares)	273,769,513	251,358,977
San Diego Gas and Electric Company [Member]
Property, plant and equipment, net related to VIE	$ 295	$ 321
Current portion of long-term debt	81	220
Long-term debt, VIE	$ 190	$ 284
Stockholders' Equity Attributable to Parent [Abstract]
Preferred stock, shares authorized (in shares)	45,000,000	45,000,000
Preferred stock, shares outstanding (in shares)	0	0
Preferred stock, shares issued (in shares)	0	0
Common stock, shares authorized (in shares)	255,000,000	255,000,000
Common stock, shares outstanding (in shares)	117,000,000	117,000,000
Southern California Gas Company [Member]
Current portion of long-term debt	$ 3	$ 501
Stockholders' Equity Attributable to Parent [Abstract]
Preferred stock, shares authorized (in shares)	11,000,000	11,000,000
Preferred stock, shares outstanding (in shares)	1,000,000	1,000,000
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares outstanding (in shares)	91,000,000	91,000,000
Otay Mesa VIE [Member]
Current portion of long-term debt	$ 28	$ 10
Otay Mesa VIE [Member] \| San Diego Gas and Electric Company [Member]
Current portion of long-term debt	$ 28	$ 10
Series A Preferred Stock [Member]
Stockholders' Equity Attributable to Parent [Abstract]
Preferred stock, shares outstanding (in shares)	17,250,000
Preferred stock, shares issued (in shares)	17,250,000
Series B Preferred Stock [Member]
Stockholders' Equity Attributable to Parent [Abstract]
Preferred stock, shares outstanding (in shares)	5,750,000
Preferred stock, shares issued (in shares)	5,750,000

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - EFFECTS OF REGULATION (Details)	12 Months Ended
	Dec. 31, 2018 utility
Sempra South American Utilities [Member]
Schedule of Equity Method Investments [Line Items]
Number of electric distribution utilities	2
Oncor Electric Delivery Company LLC [Member] \| Sempra Texas Utility [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage in equity method investee	80.25%

NEW ACCOUNTING STANDARDS - BALANCE SHEET IMPACT (Details) - USD ($) $ in Millions	Jan. 01, 2019	Dec. 31, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other current assets		$ 257	$ 202
Property, plant and equipment, net		36,796	36,503
Deferred income taxes		2,571	2,767
Other current liabilities		970	816
Deferred credits and other		1,529	1,602
Retained earnings		10,104	10,147
San Diego Gas and Electric Company [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other current assets		5	4
Property, plant and equipment, net		16,310	14,838
Deferred income taxes		1,616	1,530
Other current liabilities		141	147
Deferred credits and other		488	544
Retained earnings		4,687	4,268
Southern California Gas Company [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other current assets		31	48
Property, plant and equipment, net		12,439	11,406
Deferred income taxes		1,177	995
Other current liabilities		217	137
Deferred credits and other		330	345
Retained earnings		$ 3,390	$ 3,040
Scenario, Forecast [Member] \| Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other current assets	$ (68)
Property, plant and equipment, net	(147)
Right-of-use assets – operating leases	623
Deferred income taxes	(3)
Other current liabilities	81
Long-term debt	(138)
Deferred credits and other	445
Retained earnings	17
Scenario, Forecast [Member] \| San Diego Gas and Electric Company [Member] \| Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other current assets	0
Property, plant and equipment, net	0
Right-of-use assets – operating leases	130
Deferred income taxes	0
Other current liabilities	20
Long-term debt	0
Deferred credits and other	110
Retained earnings	0
Scenario, Forecast [Member] \| Southern California Gas Company [Member] \| Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other current assets	0
Property, plant and equipment, net	0
Right-of-use assets – operating leases	116
Deferred income taxes	0
Other current liabilities	23
Long-term debt	0
Deferred credits and other	93
Retained earnings	$ 0

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($)
$ in Millions

Total

Preferred Stock [Member]

Common Stock [Member]

Retained earnings [Member]

Accumulated other comprehensive income (loss) [Member]

Shareholders' equity [Member]

Non-controlling interests [Member]

San Diego Gas and Electric Company [Member]

Common Stock [Member]

San Diego Gas and Electric Company [Member]

Retained earnings [Member]

San Diego Gas and Electric Company [Member]

Accumulated other comprehensive income (loss) [Member]

San Diego Gas and Electric Company [Member]

Shareholders' equity [Member]

San Diego Gas and Electric Company [Member]

Non-controlling interests [Member]

Southern California Gas Company [Member]

Preferred Stock [Member]

Southern California Gas Company [Member]

Common Stock [Member]

Southern California Gas Company [Member]

Retained earnings [Member]

Southern California Gas Company [Member]

Accumulated other comprehensive income (loss) [Member]

Preferred Class A [Member]

Preferred Stock [Member]

Preferred Class A [Member]

Retained earnings [Member]

Preferred Class A [Member]

Shareholders' equity [Member]

Preferred Class B [Member]

Preferred Stock [Member]

Preferred Class B [Member]

Retained earnings [Member]

Preferred Class B [Member]

Shareholders' equity [Member]

Cumulative-effect adjustment from change in accounting priniciple

$ 107

$ 23

$ 15

Beginning Balance at Dec. 31, 2015

12,579

$ 0

$ 2,621

9,994

$ (806)

11,809

$ 770

5,276

$ 1,338

3,893

$ (8)

5,223

$ 53

3,149

$ 22

$ 866

2,280

$ (19)

Net income

1,519

^[1]

1,371

148

565

^[1]

570

(5)

350

^[1]

350

Other comprehensive (loss) income

(3)

Share-based compensation expense

Preferred stock dividends declared

(1)

Common stock dividends declared

(754)

(175)

Preferred dividends of subsidiary

(1)

^[1]

(1)

Issuances of stock

104

Repurchases of common stock

(56)

Equity contributed by noncontrolling interests

Distributions

(65)

(23)

Sale of noncontrolling interests, net of offering costs

1,701

261

281

1,420

Ending balance at Dec. 31, 2016

15,241

2,982

10,717

(748)

12,951

2,290

5,678

1,338

4,311

(8)

5,641

3,510

866

2,644

(22)

Net income

351

^[1]

257

421

^[1]

407

397

^[1]

397

Other comprehensive (loss) income

142

122

Share-based compensation expense

Preferred stock dividends declared

(1)

Common stock dividends declared

(826)

(450)

Preferred dividends of subsidiary

(1)

^[1]

(1)

Issuances of stock

100

Repurchases of common stock

(15)

Equity contributed by noncontrolling interests

Distributions

(132)

(35)

Sale of noncontrolling interests, net of offering costs

196

Ending balance at Dec. 31, 2017

15,140

3,149

10,147

(626)

12,670

2,470

5,626

1,338

4,268

(8)

5,598

3,907

866

3,040

(21)

Cumulative-effect adjustment from change in accounting priniciple

(1)

(3)

(1)

Net income

1,126

1,050

676

669

401

Other comprehensive (loss) income

(133)

(135)

(2)

Share-based compensation expense

Preferred stock dividends declared

(1)

$ (105)

$ (20)

Common stock dividends declared

(969)

(250)

(50)

Preferred dividends of subsidiary

(1)

Issuances of stock

2,326

$ 1,693

$ 565

Repurchases of common stock

(21)

Equity contributed by noncontrolling interests

Distributions

(110)

(8)

Purchases of noncontrolling interests

(8)

(1)

(7)

Sale of noncontrolling interests, net of offering costs

Increase from acquisition from noncontrolling interests

Decrease from divestiture from noncontrolling interests

(486)

Ending balance at Dec. 31, 2018

$ 19,248

$ 2,258

$ 5,540

$ 10,104

$ (764)

$ 17,138

$ 2,110

$ 6,115

$ 1,338

$ 4,687

$ (10)

$ 6,015

$ 100

$ 4,258

$ 22

$ 866

$ 3,390

$ (20)

[1]	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1.

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - TRANSACTIONS WITH AFFILIATES (Details) $ in Millions, $ in Billions	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2018 MXN ($)	Mar. 31, 2016
Related Party Transaction [Line Items]
Due from unconsolidated affiliates - current	$ 39	$ 37
Due from unconsolidated affiliates - noncurrent	688	598
Due to unconsolidated affiliates - current	(10)	(7)
Due to unconsolidated affiliates, noncurrent	$ (37)	(35)
ESJ joint venture [Member]
Related Party Transaction [Line Items]
Related party transaction rate	8.89%
TAG Pipeline Norte [Member]
Related Party Transaction [Line Items]
Related party transaction rate	5.77%
LIBOR [Member] \| ESJ joint venture [Member]
Related Party Transaction [Line Items]
Variable percentage rate	6.375%
LIBOR [Member] \| TAG Pipeline Norte [Member]
Related Party Transaction [Line Items]
Variable percentage rate	2.90%
Sempra South American Utilities [Member] \| Eletrans [Member]
Related Party Transaction [Line Items]
Due from unconsolidated affiliates - noncurrent	$ 43	103
Sempra South American Utilities [Member] \| Other related parties [Member]
Related Party Transaction [Line Items]
Due from unconsolidated affiliates - noncurrent	1	1
Sempra Mexico [Member] \| IMG [Member]
Related Party Transaction [Line Items]
Due from unconsolidated affiliates - noncurrent	641	487
Total facility	721		$ 14.2
Sempra Mexico [Member] \| ESJ joint venture [Member]
Related Party Transaction [Line Items]
Due from unconsolidated affiliates - noncurrent	$ 3	7
Sempra Mexico [Member] \| TAG Pipeline Norte [Member]
Related Party Transaction [Line Items]
Ownership percentage in equity method investee	50.00%		50.00%
Due to unconsolidated affiliates, noncurrent	$ (37)	(35)
Sempra Mexico [Member] \| Interbank Equilibrium Rate [Member] \| IMG [Member]
Related Party Transaction [Line Items]
Variable percentage rate	2.20%
Related party transaction rate	10.84%
San Diego Gas and Electric Company [Member]
Related Party Transaction [Line Items]
Due to unconsolidated affiliates - current	$ (61)	(40)
Total facility	750
San Diego Gas and Electric Company [Member] \| Due to/from Sempra Energy [Member]
Related Party Transaction [Line Items]
Due to unconsolidated affiliates - current	(43)	(30)
Income taxes due from Sempra Energy	5	27
San Diego Gas and Electric Company [Member] \| Due to/from SoCalGas [Member]
Related Party Transaction [Line Items]
Due to unconsolidated affiliates - current	(6)	(4)
San Diego Gas and Electric Company [Member] \| Due to/from Various Affiliates [Member]
Related Party Transaction [Line Items]
Due to unconsolidated affiliates - current	(12)	(6)
Southern California Gas Company [Member]
Related Party Transaction [Line Items]
Due from unconsolidated affiliates - current	7	4
Due to unconsolidated affiliates - current	(34)	(35)
Total facility	750
Southern California Gas Company [Member] \| Due to/from Sempra Energy [Member]
Related Party Transaction [Line Items]
Due to unconsolidated affiliates - current	(34)	(35)
Income taxes due to Sempra Energy	(4)
Income taxes due from Sempra Energy		10
Southern California Gas Company [Member] \| Due to/from Various Affiliates [Member]
Related Party Transaction [Line Items]
Due from unconsolidated affiliates - current	1	0
Southern California Gas Company [Member] \| Due to/from SDGE [Member]
Related Party Transaction [Line Items]
Due from unconsolidated affiliates - current	$ 6	$ 4
Rockies Express [Member] \| Sempra LNG & Midstream [Member]
Related Party Transaction [Line Items]
Ownership percentage in equity method investee				25.00%

REVENUES - OTHER REVENUES (Details)	Dec. 31, 2018
Sempra Renewables [Member]
Lessee, Lease, Description [Line Items]
Operating lease term	15 years

COMMITMENTS AND CONTINGENCIES - OTHER COMMITMENTS (Details)	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2011 USD ($) MMcf
Sunrise Powerlink Construction [Member] \| SDG&E [Member]
Loss Contingencies [Line Items]
2019	$ 3,000,000
2020	3,000,000
2021	3,000,000
2022	3,000,000
2023	3,000,000
Thereafter	105,000,000
Other Commitment	$ 120,000,000
Estimated annual escalation	2.00%
Long-term Purchase Commitment, Period	51 years
Present value of future payments	$ 120,000,000
Continental Forge [Member] \| Sempra LNG & Midstream [Member]
Loss Contingencies [Line Items]
Long-term Purchase Commitment, Period		18 years
Amount of Natural Gas to be Sold \| MMcf		500
Price index		$ 0.02

QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Data [Abstract]

Schedule Of Quarterly Financial Data Table

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



SEMPRA ENERGY
(In millions, except per share amounts)
	Quarters ended
	March 31		June 30			September 30		December 31
2018:
Revenues	$	2,962	$	2,564		$	2,940	$	3,221
Expenses and other income	$	2,295	$	3,673		$	2,513	$	2,160

Net income (loss)	$	358	$	(530	)	$	334	$	964
Earnings (losses) attributable to common shares	$	347	$	(561	)	$	274	$	864

Basic per-share amounts⁽¹⁾:
Net income (loss)	$	1.39	$	(1.99	)	$	1.22	$	3.51
Earnings (losses) attributable to common shares	$	1.34	$	(2.11	)	$	1.00	$	3.15
Weighted-average common shares outstanding	257.9		265.8			273.9		274.3

Diluted per-share amounts⁽¹⁾⁽²⁾:
Net income (loss)	$	1.38	$	(1.99	)	$	1.21	$	3.25
Earnings (losses) attributable to common shares⁽³⁾	$	1.33	$	(2.11	)	$	0.99	$	3.03
Weighted-average common shares outstanding	259.5		265.8			275.9		296.4
2017:
Revenues	$	3,031	$	2,533		$	2,679	$	2,964
Expenses and other income⁽⁴⁾	$	2,279	$	2,136		$	2,674	$	2,567

Net income (loss)	$	452	$	248		$	102	$	(451	)
Earnings (losses) attributable to common shares	$	441	$	259		$	57	$	(501	)

Basic per-share amounts⁽¹⁾:
Net income (loss)	$	1.80	$	0.99		$	0.41	$	(1.80	)
Earnings (losses) attributable to common shares	$	1.76	$	1.03		$	0.23	$	(1.99	)
Weighted-average common shares outstanding	251.1		251.4			251.7		251.9

Diluted per-share amounts⁽¹⁾⁽²⁾:
Net income (loss)	$	1.79	$	0.98		$	0.41	$	(1.80	)
Earnings (losses) attributable to common shares	$	1.75	$	1.03		$	0.22	$	(1.99	)
Weighted-average common shares outstanding	252.2		252.8			253.4		251.9


⁽¹⁾	EPS is computed independently for each of the quarters and therefore may not sum to the total for the year.


⁽²⁾	In the quarters ended June 30, 2018 and December 31, 2017, the total weighted-average potentially dilutive securities were not included in the computation of losses per common share since to do so would have decreased the loss per share.


⁽³⁾	Due to the dilutive effect of the mandatory convertible preferred stock in the quarter ended December 31, 2018, the numerator used to calculate diluted EPS included an add-back of $36 million of mandatory convertible preferred stock dividends declared in that quarter.

⁽⁴⁾

Amount reflects a reclassification of equity earnings to conform to current year presentation, which we discuss in Note 1.



SDG&E
(Dollars in millions)
	Quarters ended
	March 31			June 30			September 30			December 31
2018:
Operating revenues	$	1,055		$	1,051		$	1,299		$	1,163
Operating expenses	807			836			999			916
Operating income	$	248		$	215		$	300		$	247

Net income	$	169		$	146		$	216		$	145
Losses (earnings) attributable to noncontrolling interest	1			—			(11		)	3
Earnings attributable to common shares	$	170		$	146		$	205		$	148
2017:
Operating revenues	$	1,057		$	1,058		$	1,236		$	1,125
Operating expenses⁽¹⁾	783			821			1,294			869
Operating income (loss)⁽¹⁾	$	274		$	237		$	(58	)	$	256

Net income (loss)	$	157		$	153		$	(19	)	$	130
(Earnings) losses attributable to noncontrolling interest	(2		)	(4		)	(9		)	1
Earnings (losses) attributable to common shares	$	155		$	149		$	(28	)	$	131


⁽¹⁾	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2.



SOCALGAS
(Dollars in millions)
	Quarters ended
	March 31		June 30			September 30			December 31
2018:
Operating revenues	$	1,126	$	772		$	802		$	1,262
Operating expenses	848		703			797			1,023
Operating income	$	278	$	69		$	5		$	239

Net income (loss)	$	225	$	34		$	(14	)	$	156
Dividends on preferred stock	—		(1		)	—			—
Earnings (losses) attributable to common shares	$	225	$	33		$	(14	)	$	156
2017:
Operating revenues	$	1,241	$	770		$	684		$	1,090
Operating expenses⁽¹⁾	929		690			679			860
Operating income⁽¹⁾	$	312	$	80		$	5		$	230

Net income	$	203	$	59		$	7		$	128
Dividends on preferred stock	—		(1		)	—			—
Earnings attributable to common shares	$	203	$	58		$	7		$	128

⁽¹⁾

As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2.

INVESTMENTS IN UNCONSOLIDATED ENTITIES

12 Months Ended

Dec. 31, 2018

Investments [Abstract]

INVESTMENTS IN UNCONSOLIDATED ENTITIES

We generally account for investments under the equity method when we have significant influence over, but do not have control of, these entities. In these cases, our pro rata shares of the entities’ net assets are included in Investment in Oncor Holdings or Other Investments on the Consolidated Balance Sheets. We evaluate the carrying value of unconsolidated entities for impairment under the U.S. GAAP provisions for equity method investments.

We adjust each investment for our share of each investee’s earnings or losses, dividends, and OCI. Equity earnings and losses, both before and net of income tax, are combined and presented as Equity Earnings on the Consolidated Statements of Operations. See Note 8 for information regarding the pretax income or loss used to calculate our ETR.

Our equity method investments include various domestic and foreign entities. Our domestic equity method investees are typically partnerships that are pass-through entities for income tax purposes and therefore they do not record income tax. Sempra Energy’s income tax on earnings from these equity method investees, other than Oncor Holdings as we discuss below, is included in Income Tax Expense on the Consolidated Statements of Operations.

Oncor is a partnership for U.S. federal income tax purposes and is not included in the consolidated income tax return of Sempra Energy. Rather, only our equity earnings from our investment in Oncor Holdings (a disregarded entity for tax purposes) are included in our consolidated income tax return. A tax sharing agreement with TTI, Oncor Holdings and Oncor provides for the calculation of an income tax liability substantially as if Oncor Holdings and Oncor were taxed as corporations, and requires tax payments determined on that basis. While partnerships are not subject to income taxes, in consideration of the tax sharing agreement and Oncor being subject to the provisions of U.S. GAAP governing rate-regulated operations, Oncor recognizes amounts determined under cost-based regulatory rate-setting processes (with such costs including income taxes), as if it were taxed as a corporation. As a result, since Oncor Holdings consolidates Oncor, we recognize equity earnings from our investment in Oncor Holdings net of its recorded income tax.

With the exception of RBS Sempra Commodities, discussed below, our foreign equity method investees are corporations whose

operations are taxable on a stand-alone basis in the countries in which they operate, and we recognize our equity in such income or losses net of investee income tax. We may be subject to additional taxes related to these foreign investments, such as taxes on cash dividends or other cash distributions, which are recorded in Income Tax Expense on the Consolidated Statements of Operations.

We provide the carrying values of our investments and earnings (losses) on these investments in the following tables.



EQUITY METHOD AND OTHER INVESTMENT BALANCES
(Dollars in millions)
	Percent ownership
	December 31,				December 31,
	2018		2017		2018		2017
Sempra Texas Utility:
Oncor Holdings⁽¹⁾	100	%	—	%	$	9,652	$	—
Sempra South American Utilities:
Eletrans	50		50		$	17	$	16
Sempra Mexico:
Energía Sierra Juárez⁽²⁾	50		50		43		39
IMG⁽³⁾	40		40		328		221
TAG⁽⁴⁾	50		50		376		364
Sempra Renewables:
Wind:
Auwahi Wind	50		50		38		42
Broken Bow 2 Wind	—		50		—		32
Cedar Creek 2 Wind	50		50		69		72
Flat Ridge 2 Wind⁽⁵⁾	50		50		82		255
Fowler Ridge 2 Wind	50		50		45		44
Mehoopany Wind⁽⁶⁾	50		50		57		89
Solar:
California solar partnership	—		50		—		107
Copper Mountain Solar 2	—		50		—		35
Copper Mountain Solar 3	—		50		—		44
Mesquite Solar 1	—		50		—		81
Other					—		12
Sempra LNG & Midstream:
Cameron LNG JV⁽⁷⁾	50.2		50.2		1,271		997
Parent and other:
RBS Sempra Commodities	49		49		—		67
Total equity method investments					2,326		2,517
Other					11		10
Total other investments					$	2,337	$	2,527


⁽¹⁾	The carrying value of our equity method investment is $2,814 million higher than the underlying equity in the net assets of the investee due to $2,868 million of equity method goodwill and $69 million in basis differences in AOCI, offset by $123 million due to a tax sharing liability to TTI under the tax sharing agreement.


⁽²⁾	The carrying value of our equity method investment is $12 million higher than the underlying equity in the net assets of the investee due to the remeasurement of our retained investment to fair value in 2014.


⁽³⁾	The carrying value of our equity method investment is $5 million higher than the underlying equity in the net assets of the investee due to guarantees, which we discuss below.


⁽⁴⁾	The carrying value of our equity method investment is $130 million higher than the underlying equity in the net assets of the investee due to equity method goodwill.


⁽⁵⁾	The carrying value of our equity method investment is $169 million lower than the underlying equity in the net assets of the investee due to an other-than-temporary impairment recorded in 2018.


⁽⁶⁾	The carrying value of our equity method investment is $31 million lower than the underlying equity in the net assets of the investee due to an other-than-temporary impairment recorded in 2018.


⁽⁷⁾	The carrying value of our equity method investment is $284 million and $237 million higher than the underlying equity in the net assets of the investee at December 31, 2018 and 2017, respectively, primarily due to guarantees, which we discuss below, and interest capitalized on the investment, as the JV has not commenced its planned principal operations.



EARNINGS (LOSSES) FROM EQUITY METHOD INVESTMENTS
(Dollars in millions)
	Years ended December 31,
	2018			2017			2016
Earnings (losses) recorded before income tax⁽¹⁾:
Sempra Renewables:
Wind:
Auwahi Wind	$	3		$	5		$	4
Broken Bow 2 Wind	(2		)	(2		)	(2		)
Cedar Creek 2 Wind	(1		)	(2		)	(2		)
Flat Ridge 2 Wind⁽²⁾	(178		)	(13		)	(7		)
Fowler Ridge 2 Wind	3			4			4
Mehoopany Wind⁽²⁾	(30		)	(1		)	—
Solar:
California solar partnership	8			7			7
Copper Mountain Solar 2	5			5			6
Copper Mountain Solar 3	8			8			8
Mesquite Solar 1	18			18			17
Other	(3		)	—			(1		)
Sempra LNG & Midstream:
Cameron LNG JV	—			5			(2		)
Rockies Express Pipeline	—			—			(26		)
Parent and other:
RBS Sempra Commodities⁽²⁾	(67		)	—			—
	(236		)	34			6
Earnings (losses) recorded net of income tax:
Sempra Texas Utility:
Oncor Holdings	371			—			—
Sempra South American Utilities:
Eletrans	1			4			3
Sempra Mexico:
DEN	—			(13		)	5
Energía Sierra Juárez	2			—			6
IEnova Pipelines	—			—			64
IMG	29			45			—
TAG	9			6			—
	412			42			78
Total	$	176		$	76		$	84


⁽¹⁾	We provide our ETR calculation in Note 8.


⁽²⁾	Losses from equity method investment in 2018 include an other-than-temporary impairment charge, which we discuss below.

At December 31, 2018 and 2017, our share of the undistributed earnings of equity method investments was $332 million and $89 million, respectively, including $221 million at December 31, 2018 in undistributed earnings of more than 50-percent-owned equity method investments.

SEMPRA TEXAS UTILITY

As we discuss in Note 5, on March 9, 2018, we completed the acquisition of an indirect, 100-percent interest in Oncor Holdings, which owns an 80.25-percent interest in Oncor. Due to ring-fencing measures, governance mechanisms and commitments in effect following the Merger, we do not have the power to direct the significant activities of Oncor Holdings and Oncor, which we discuss in the following paragraph. Consequently, we account for our investment in Oncor Holdings under the equity method, which comprises our Sempra Texas Utility reportable segment.

As we discuss in Note 5, reorganized EFH (renamed Sempra Texas Holdings Corp.) was merged with an indirect subsidiary of Sempra Energy, and its assets and liabilities relating to non-Oncor operations have been subsumed into our parent organization. Certain ring-fencing measures, existing governance mechanisms and commitments remain in effect following the Merger, which are intended to enhance Oncor Holdings’ and Oncor’s separateness from their owners and to mitigate the risk that these entities would be negatively impacted by the bankruptcy of, or other adverse financial developments affecting, EFH or its other subsidiaries or the owners of EFH. Sempra Energy does not control Oncor Holdings or Oncor, and the ring-fencing measures, governance mechanisms and commitments limit our ability to direct the management, policies and operations of Oncor Holdings and Oncor, including the deployment or disposition of their assets, declarations of dividends, strategic planning and other important corporate issues and actions. These limitations include limited representation on the Oncor Holdings and Oncor boards of directors, as Oncor Holdings and Oncor will continue to have a majority of independent directors. Thus, Oncor Holdings and Oncor will continue to be managed independently (i.e., ring-fenced). As such, we account for our 100-percent ownership interest in Oncor Holdings as an equity method investment.

We recognized equity earnings, net of income tax, of $371 million for the period since the acquisition date through December 31, 2018. We contributed $230 million in cash, commensurate with our ownership interest, to Oncor in 2018 in accordance with the terms of the Merger Agreement, which enabled Oncor to achieve its required capital structure calculated for regulatory purposes.

We provide summarized income statement and balance sheet information for Oncor Holdings in the following table.



SUMMARIZED FINANCIAL INFORMATION – ONCOR HOLDINGS
(Dollars in millions)
	March 9 - December 31, 2018
Gross revenues	$	3,347
Operating expense	(2,434		)
Income from operations	913
Interest expense	(285		)
Income tax expense	(119		)
Net income	455
Noncontrolling interest held by TTI	(94		)
Earnings attributable to Sempra Energy⁽¹⁾	360

	At December 31, 2018
Current assets	$	772
Noncurrent assets	21,980
Current liabilities	2,217
Noncurrent liabilities	11,756


⁽¹⁾	Earnings at Oncor Holdings differ from earnings at the Sempra Texas Utility segment due to amortization of a tax sharing liability associated with a tax sharing arrangement and basis differences in AOCI.

SEMPRA SOUTH AMERICAN UTILITIES

In 2017, Sempra South American Utilities recorded the equitization of its $19 million note receivable due from Eletrans, resulting in an increase in its investment in this unconsolidated JV. In 2017, Sempra South American Utilities invested cash of $1 million in Eletrans.

SEMPRA MEXICO

IEnova Pipelines, DEN and TAG

On September 26, 2016, IEnova completed the acquisition of the remaining 50-percent interest in IEnova Pipelines and IEnova Pipelines became a consolidated subsidiary. Prior to the acquisition date, IEnova owned 50 percent of IEnova Pipelines and accounted for its interest as an equity method investment. As of the acquisition date, IEnova accounted for IEnova Pipelines’ 50-percent interest in DEN as an equity method investment.

On November 15, 2017, IEnova acquired the remaining 50-percent interest in DEN, and DEN became a consolidated subsidiary. Since the acquisition date, IEnova accounts for DEN’s 50-percent interest in TAG as an equity method investment. We discuss these acquisitions in Note 5.

IMG

In June 2016, IMG, a JV between IEnova and a subsidiary of TransCanada, was awarded the right to build, own and operate the Sur de Texas-Tuxpan natural gas marine pipeline by the CFE. IEnova has a 40-percent interest in the project and accounts for its interest as an equity method investment, and TransCanada owns the remaining 60-percent interest. The marine pipeline is fully contracted under a 25-year natural gas transportation service contract with the CFE. We expect the project to be completed in the second quarter of 2019. In 2018, 2017 and 2016, Sempra Mexico invested cash of $80 million, $72 million and $100 million, respectively, in the IMG JV.

SEMPRA RENEWABLES

On June 25, 2018, our board of directors approved a plan to sell all wind assets and investments and solar assets and investments, including our wholly owned facilities, JV and tax equity investments and projects in development in our Sempra Renewables reportable segment, all of which are located in the U.S. In December 2018, Sempra Renewables completed the sale of all its operating solar assets, including its solar equity method investments, and one wind equity method investment to a subsidiary of Con Ed. In February 2019, Sempra Renewables entered into an agreement to sell its remaining wind assets and investments. We expect to complete the sale in the second quarter of 2019. We discuss the completed sale with Con Ed and plan of sale for the remaining assets in Note 5.

Because of our expectation of a shorter holding period as a result of this plan of sale, we evaluated the recoverability of the carrying amounts of our wind and solar equity method investments and concluded there is an other-than-temporary impairment on certain of our wind equity method investments totaling $200 million, which is included in Equity Earnings on Sempra Energy’s Consolidated Statement of Operations for the year ended December 31, 2018. Our wind investments totaling $291 million at December 31, 2018, which are also included in the plan of sale, continue to be classified as Other Investments on Sempra Energy’s Consolidated Balance Sheet. We discuss non-recurring fair value measures in Note 12.

In 2018 and 2016, Sempra Renewables invested cash of $5 million and $18 million, respectively, in its unconsolidated JVs.

SEMPRA LNG & MIDSTREAM

Rockies Express

As we discuss in Note 5, in May 2016, Sempra LNG & Midstream sold its 25-percent interest in Rockies Express, a partnership that operates a natural gas pipeline, REX, that links the Rocky Mountain region to the upper Midwest and the eastern U.S.

Cameron LNG JV

Cameron LNG JV was formed in October 2014 among Sempra Energy and three project partners. The Cameron LNG existing regasification terminal that was contributed to Cameron LNG JV included two marine berths and three LNG storage tanks, and facilities capable of processing 1.5 Bcf of natural gas per day. The current liquefaction project, which is utilizing Cameron LNG JV’s existing facilities, is comprised of three liquefaction trains and is being designed to have a nameplate capacity of 13.9 Mtpa of LNG, with an expected export capability of 12 Mtpa of LNG, or approximately 1.7 Bcf per day. We account for our investment in Cameron LNG JV under the equity method.

Sempra LNG & Midstream capitalized interest of $47 million in each of 2018, 2017 and 2016, related to this equity method investment that has not commenced planned principal operations. In 2018 and 2017, Sempra LNG & Midstream invested cash of $228 million and $1 million, respectively, in Cameron LNG JV.

Cameron LNG JV Financing

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

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

Interest. The weighted-average all-in cost of the loans outstanding under all the Loan Facility Agreements (and based on certain assumptions as to timing of drawdown) is 1.59 percent per annum over LIBOR prior to financial completion of the project and 1.78 percent per annum over LIBOR following financial completion of the project. The Loan Facility Agreements require Cameron LNG JV to hedge 50 percent of outstanding borrowings to fix the interest rate, beginning in 2016. The hedges are to remain in place until the debt principal has been amortized by 50 percent. In November 2014, Cameron LNG JV entered into floating-to-fixed interest rate swaps for approximately $3.7 billion notional amount, resulting in an effective fixed rate of 3.19 percent for the LIBOR component of the interest rate on the loans. In June 2015, Cameron LNG JV entered into additional floating-to-fixed interest rate swaps effective starting in 2020, for approximately $1.5 billion notional amount, resulting in an effective fixed rate of 3.32 percent for the LIBOR component of the interest rate on the loans.

Guarantees. In August 2014, Sempra Energy entered into agreements for the benefit of all of Cameron LNG JV’s creditors under the Loan Facility Agreements and related finance documents. Pursuant to these agreements, Sempra Energy has severally guaranteed 50.2 percent of Cameron LNG JV’s obligations under the Loan Facility Agreements and related finance documents, or a maximum amount of $3.9 billion. Guarantees for the remaining 49.8 percent of Cameron LNG JV’s senior secured financing have been provided by the other project owners. Sempra Energy’s agreements and guarantees will terminate upon financial completion of the three-train Cameron LNG project, which is subject to satisfaction of certain conditions, including all three trains achieving commercial operations and meeting certain operational performance tests. We expect the project to achieve financial completion and the guarantees to be terminated approximately nine months after all three trains achieve commercial operation. Sempra Energy recorded a liability of $82 million in October 2014, with an associated carrying value of $9 million at December 31, 2018, for the fair value of its obligations associated with the Loan Facility Agreements and related finance documents, which constitute guarantees. This liability is being reduced on a straight-line basis over the duration of the guarantees by recognizing equity earnings from Cameron LNG JV, included in Equity Earnings.

In August 2014, Sempra Energy and the other project owners entered into a transfer restrictions agreement with Société Générale, as intercreditor agent for the lenders under the Loan Facility Agreements. Pursuant to the transfer restriction agreement, Sempra Energy agreed to certain restrictions on its ability to dispose of Sempra Energy’s indirect fully diluted economic and beneficial ownership interests in Cameron LNG JV. These restrictions vary over time. Prior to financial completion of the three-train Cameron LNG project, Sempra Energy must retain 37.65 percent of such interest in Cameron LNG JV. Starting six months after financial completion of the three-train Cameron LNG project, Sempra Energy must retain at least 10 percent of the indirect fully diluted economic and beneficial ownership interest in Cameron LNG JV. In addition, at all times, a Sempra Energy controlled (but not necessarily wholly owned) subsidiary must directly own 50.2 percent of the membership interests of the Cameron LNG JV.

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

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

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

RBS SEMPRA COMMODITIES

RBS Sempra Commodities is a United Kingdom limited liability partnership formed by Sempra Energy and RBS in 2008 to own and operate the commodities-marketing businesses previously operated through wholly owned subsidiaries of Sempra Energy. We and RBS sold substantially all of the partnership’s businesses and assets in four separate transactions completed in 2010 and 2011. Since 2011, our investment balance has reflected our share of the remaining partnership assets, including amounts retained by the partnership to help offset unanticipated future general and administrative costs necessary to complete the dissolution of the partnership and the distribution of the partnership’s remaining assets, if any. We account for our investment in RBS Sempra Commodities under the equity method.

In September 2018, we fully impaired our remaining equity method investment in RBS Sempra Commodities by recording a charge of $65 million in Equity Earnings on Sempra Energy’s Consolidated Statement of Operations. We discuss matters related to RBS Sempra Commodities further in “Other Litigation” in Note 16.

SUMMARIZED FINANCIAL INFORMATION

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



SUMMARIZED FINANCIAL INFORMATION – OTHER EQUITY METHOD INVESTMENTS
(Dollars in millions)
	Years ended December 31,
	2018⁽¹⁾			2017⁽²⁾			2016⁽³⁾
Gross revenues	$	727		$	846		$	1,079
Operating expense	(614		)	(590		)	(726		)
Income from operations	113			256			353
Interest expense	(330		)	(217		)	(127		)
Net (loss) income/(Losses) earnings⁽⁴⁾	(33		)	116			252



	At December 31,
	2018⁽¹⁾		2017⁽²⁾
Current assets	$	625	$	974
Noncurrent assets	14,803		14,087
Current liabilities	813		797
Noncurrent liabilities	10,226		9,809


⁽¹⁾	On December 13, 2018, Sempra Renewables sold all its operating solar assets, including its solar equity method investments, and its 50-percent interest in the Broken Bow 2 wind power generation facility to a subsidiary of Con Ed. As of December 13, 2018, the solar equity method investments and Broken Bow 2 are no longer equity method investments.


⁽²⁾	On November 15, 2017, IEnova completed the asset acquisition of PEMEX’s 50-percent interest in DEN, increasing its ownership percentage to 100 percent. As of November 15, 2017, DEN is no longer an equity method investment.


⁽³⁾	On September 26, 2016, IEnova completed the acquisition of PEMEX’s 50-percent interest in IEnova Pipelines, increasing its ownership percentage to 100 percent, and on May 9, 2016, Sempra LNG & Midstream sold its 25-percent interest in Rockies Express. As of the respective transaction dates, IEnova Pipelines and Rockies Express are no longer equity method investments.


⁽⁴⁾	Except for our investments in South America and Mexico, there was no income tax recorded by the entities, as they are primarily domestic partnerships.

GUARANTEES

Project financing at wind JVs generally requires the JV partners, for each partner’s interest, to return cash to the projects in the event that the projects do not meet certain cash flow criteria or in the event that the projects’ debt service and O&M reserve accounts are not maintained at specific thresholds. In some cases, the JV partners have provided guarantees to the lenders in lieu of the projects’ funding the reserve account requirements. We recorded liabilities for the fair value of certain of our obligations associated with these guarantees, and the liabilities are being amortized over their expected lives. The outstanding loans at our wind JVs are not guaranteed by the partners, but are secured by project assets.

IEnova has an indirect 40-percent ownership interest and TransCanada has an indirect 60-percent ownership interest in IMG. IEnova and TransCanada have each provided guarantees to third parties associated with construction of IMG’s Sur de Texas –Tuxpan natural gas marine pipeline. IEnova expects the construction giving rise to these guarantees to be completed in the second quarter of 2019.

At December 31, 2018, we provided guarantees aggregating a maximum of $152 million with an associated aggregated carrying value of $5 million for guarantees related to project financing. In addition, at December 31, 2018, we provided guarantees to JVs aggregating a maximum of $79 million with an associated aggregated carrying value of $1 million, primarily related to PPAs and EPC contracts. We discuss guarantees associated with Cameron LNG JV in “Sempra LNG & Midstream – Cameron LNG JV” above.

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - OTHER NONCONTROLLING INTERESTS (Details) $ in Millions	Dec. 31, 2018 USD ($) subsidiary	Dec. 31, 2017 USD ($)
Noncontrolling Interest [Line Items]
Other noncontrolling interests	$ 2,090	$ 2,450
SDG&E [Member] \| Otay Mesa VIE [Member]
Noncontrolling Interest [Line Items]
Ownership percentage held by noncontrolling owners	100.00%	100.00%
Other noncontrolling interests	$ 100	$ 28
Sempra South American Utilities [Member] \| Chilquinta Energia subsidiaries [Member]
Noncontrolling Interest [Line Items]
Other noncontrolling interests	$ 23	$ 24
Number of subsidiaries with noncontrolling interests \| subsidiary	4
Sempra South American Utilities [Member] \| Chilquinta Energia subsidiaries [Member] \| Minimum [Member]
Noncontrolling Interest [Line Items]
Ownership percentage held by noncontrolling owners	19.70%	22.90%
Sempra South American Utilities [Member] \| Chilquinta Energia subsidiaries [Member] \| Maximum [Member]
Noncontrolling Interest [Line Items]
Ownership percentage held by noncontrolling owners	43.40%	43.40%
Sempra South American Utilities [Member] \| Luz Del Sur [Member]
Noncontrolling Interest [Line Items]
Ownership percentage held by noncontrolling owners	16.40%	16.40%
Other noncontrolling interests	$ 193	$ 189
Sempra South American Utilities [Member] \| Tecsur [Member]
Noncontrolling Interest [Line Items]
Ownership percentage held by noncontrolling owners	9.80%	9.80%
Other noncontrolling interests	$ 4	$ 4
Sempra Mexico [Member] \| IEnova [Member]
Noncontrolling Interest [Line Items]
Ownership percentage held by noncontrolling owners	33.50%	33.60%
Other noncontrolling interests	$ 1,605	$ 1,532
Sempra Renewables [Member] \| Tax equity arrangement – wind [Member]
Noncontrolling Interest [Line Items]
Other noncontrolling interests	$ 158	181
Sempra Renewables [Member] \| Tax equity arrangement – solar [Member]
Noncontrolling Interest [Line Items]
Ownership percentage held by noncontrolling owners	0.00%
Other noncontrolling interests	$ 0	$ 450
Sempra Renewables [Member] \| PXISE Energy Solutions LLC [Member]
Noncontrolling Interest [Line Items]
Ownership percentage held by noncontrolling owners	11.10%	0.00%
Other noncontrolling interests	$ 1	$ 0
Sempra LNG & Midstream [Member] \| Bay Gas Storage Company [Member]
Noncontrolling Interest [Line Items]
Ownership percentage held by noncontrolling owners	9.10%	9.10%
Other noncontrolling interests	$ 18	$ 28
Sempra LNG & Midstream [Member] \| Liberty Gas Storage [Member]
Noncontrolling Interest [Line Items]
Ownership percentage held by noncontrolling owners	24.60%	24.60%
Other noncontrolling interests	$ (12)	$ 14
Subsidiaries [Member] \| Sempra Mexico [Member] \| IEnova subsidiary, one
Noncontrolling Interest [Line Items]
Ownership percentage held by noncontrolling owners	10.00%	10.00%
Subsidiaries [Member] \| Sempra Mexico [Member] \| IEnova subsidiary, two
Noncontrolling Interest [Line Items]
Ownership percentage held by noncontrolling owners	49.00%
Other noncontrolling interests	$ 13

ACQUISTION AND DIVESTITURE ACTIVITY - Sempra South American Utilities (Details) $ in Millions	Dec. 31, 2018 USD ($)	Dec. 18, 2018 USD ($) kv
Compania Transmisora del Norte Grande S.A. [Member]
Business Acquisition [Line Items]
Consideration transferred		$ 226
Cash and cash equivalents		18
Revenue since date of acquisition	$ 1
Compania Transmisora del Norte Grande S.A. [Member]
Business Acquisition [Line Items]
Consideration transferred		226
Cash consideration (fair value of total consideration)		208
Cash and cash equivalents		$ 18
Compania Transmisora del Norte Grande S.A. [Member] \| Sempra South American Utilities [Member] \| Compania Transmisora del Norte Grande S.A. [Member]
Business Acquisition [Line Items]
Acquired percentage interest		100.00%
Single-circuit Transmission Line [Member] \| Sempra South American Utilities [Member] \| Companía Transmisora del Norte Grande S.A. [Member]
Business Acquisition [Line Items]
Energy transmission voltage \| kv		110
Double-circuit Transmission Line [Member] \| Sempra South American Utilities [Member] \| Companía Transmisora del Norte Grande S.A. [Member]
Business Acquisition [Line Items]
Energy transmission voltage \| kv		220

FAIR VALUE MEASUREMENTS - RECON OF LEVEL 3 ASSETS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Balance at beginning of period	$ 179,000,000	$ (28,000,000)	$ (74,000,000)	$ 19,000,000
Realized and unrealized gains (losses)		209,000,000	34,000,000	(120,000,000)
Allocated transmission instruments		10,000,000	6,000,000	8,000,000
Balance at end of period		179,000,000	(28,000,000)	(74,000,000)
Change in unrealized gains (losses) relating to instruments still held at the end of the period		183,000,000	30,000,000	(101,000,000)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Settlements		12,000,000	(6,000,000)	$ (19,000,000)
San Diego Gas and Electric Company [Member] \| Maximum [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Congestion revenue rights (price per MWh)		11.99	6.93
San Diego Gas and Electric Company [Member] \| Minimum [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Congestion revenue rights (price per MWh)		(7.25)	(11.88)
San Diego Gas and Electric Company [Member] \| Weighted Average [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Congestion revenue rights (price per MWh)		0.09	(0.14)
Subsequent Event [Member] \| San Diego Gas and Electric Company [Member] \| Maximum [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Congestion revenue rights (price per MWh)	35.21
Subsequent Event [Member] \| San Diego Gas and Electric Company [Member] \| Minimum [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Congestion revenue rights (price per MWh)	(8.57)
Subsequent Event [Member] \| San Diego Gas and Electric Company [Member] \| Weighted Average [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Congestion revenue rights (price per MWh)	$ (2.94)
Level 3 [Member] \| San Diego Gas and Electric Company [Member] \| Maximum [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Market electricity forward price inputs (price per MWh)		76.85	44.10
Level 3 [Member] \| San Diego Gas and Electric Company [Member] \| Minimum [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Market electricity forward price inputs (price per MWh)		22.20	22.55
Level 3 [Member] \| San Diego Gas and Electric Company [Member] \| Weighted Average [Member]
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Purchases, Sales, Issues, Settlements [Abstract]
Market electricity forward price inputs (price per MWh)		$ 42.69	$ 35.23

ACQUISTION AND DIVESTITURE ACTIVITY - ASSETS HELD FOR SALE (Details)		1 Months Ended				3 Months Ended		12 Months Ended
	Jun. 25, 2018 USD ($)	Dec. 31, 2018 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Feb. 29, 2016 MW	Jun. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Feb. 28, 2019 USD ($)	Feb. 07, 2019 USD ($)	Feb. 06, 2019 USD ($)	Jan. 01, 2019 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Equity method investment		$ 9,652,000,000						$ 9,652,000,000	$ 0
Disposal Group Held-for-sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Asset impairment charges			$ (1,500,000,000)
Asset impairment charges, net of taxes and noncontrolling interests			(900,000,000)
Sempra Mexico [Member] \| Termoelectrica de Mexicali [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Generating capacity (in mw) \| MW					625
Other than temporary impairment in investment				$ 71,000,000		$ 71,000,000	$ 131,000,000
Other than temporary impairment in investment, net of tax							$ 111,000,000
Deferred tax expense									$ (8,000,000)	$ 8,000,000
Sempra LNG & Midstream [Member] \| Disposal Group Held-for-sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Asset impairment charges		183,000,000	(1,300,000,000)					(1,100,000,000)
Asset impairment charges, net of taxes and noncontrolling interests		126,000,000	(755,000,000)					(629,000,000)
Proceeds from sale		5,000,000						5,000,000
Sempra LNG & Midstream [Member] \| Disposal Group Held-for-sale [Member] \| Non-utility Natural gas Storage Assets [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Asset impairment charges	$ (1,300,000,000)
Asset impairment charges, net of taxes and noncontrolling interests	$ (755,000,000)
Assets Held for Sale, Assets [Abstract]
Cash		0						0
Accounts receivable – trade, net		5,000,000						5,000,000
Accounts receivable – other, net		0						0
Other current assets		6,000,000						6,000,000
Property, plant and equipment, net		324,000,000						324,000,000
Other noncurrent assets		1,000,000						1,000,000
Total assets held for sale		336,000,000						336,000,000
Assets Held for Sale, Liabilities [Abstract]
Accounts payable		2,000,000						2,000,000
Other current liabilities		3,000,000						3,000,000
Asset retirement obligations		8,000,000						8,000,000
Total liabilities held for sale		13,000,000						13,000,000
Sempra Renewables [Member] \| Wind Investments [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Equity method investment		291,000,000						291,000,000
Sempra Renewables [Member] \| Disposal Group Held-for-sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Asset impairment charges			(200,000,000)
Asset impairment charges, net of taxes and noncontrolling interests			$ (145,000,000)
Sempra Renewables [Member] \| Disposal Group Held-for-sale [Member] \| Wind and Solar Investments [Member]
Assets Held for Sale, Assets [Abstract]
Cash		7,000,000						7,000,000
Accounts receivable – trade, net		2,000,000						2,000,000
Accounts receivable – other, net		1,000,000						1,000,000
Other current assets		1,000,000						1,000,000
Property, plant and equipment, net		366,000,000						366,000,000
Other noncurrent assets		0						0
Total assets held for sale		377,000,000						377,000,000
Assets Held for Sale, Liabilities [Abstract]
Accounts payable		2,000,000						2,000,000
Other current liabilities		4,000,000						4,000,000
Asset retirement obligations		6,000,000						6,000,000
Total liabilities held for sale		12,000,000						12,000,000
Sempra Renewables [Member] \| Disposal Group Held-for-sale [Member] \| Wind Investments [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Asset impairment charges, net of taxes and noncontrolling interests								(145,000,000)
Noncontrolling Tax Equity Investors, Wind [Member] \| Subsequent Event [Member] \| Disposal Group Disposed of by Sale [Member] \| Sempra Renewables [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale											$ 551,000,000
Sempra LNG & Midstream [Member] \| Disposal Group Disposed of by Sale [Member] \| Mississippi Hub And Bay Gas [Member]
Assets Held for Sale, Assets [Abstract]
Total assets held for sale		$ 323,000,000						$ 323,000,000
Sempra LNG & Midstream [Member] \| Subsequent Event [Member] \| Disposal Group Disposed of by Sale [Member] \| Mississippi Hub And Bay Gas [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale												$ 328,000,000		$ 332,000,000
Bay Gas [Member] \| Sempra LNG & Midstream [Member] \| Subsequent Event [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Equity method investment													$ 20,000,000
Ownership percentage in equity method investee													9.10%

REGULATORY MATTERS - COST OF CAPITAL & FERC RATES (Details) - USD ($) $ in Millions	12 Months Ended		24 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Jan. 01, 2019
San Diego Gas and Electric Company [Member]
Public Utilities, General Disclosures [Line Items]
Transmission owner, formula rate revenue requirement increase		$ 88
Transmission owner, formula rate revenue requirement increase percentage		10.60%
San Diego Gas and Electric Company [Member] \| California Public Utilities Commission [Member]
Public Utilities, General Disclosures [Line Items]
Weighted return on rate base		7.79%
Cost of debt		5.00%
San Diego Gas and Electric Company [Member] \| Federal Energy Regulatory Commission [Member]
Public Utilities, General Disclosures [Line Items]
Weighting		100.00%
Weighted return on rate base		7.51%
San Diego Gas and Electric Company [Member] \| Scenario, Forecast [Member]
Public Utilities, General Disclosures [Line Items]
Transmission owner, formula rate revenue requirement	$ 911
Minimum common equity ratio				11.20%
San Diego Gas and Electric Company [Member] \| Scenario, Forecast [Member] \| California Public Utilities Commission [Member]
Public Utilities, General Disclosures [Line Items]
Weighted return on rate base			7.55%
Authorized weighting			100.00%
Cost of debt			4.59%
Change in cost of debt			(0.41%)
Change in return on rate base			(0.24%)
San Diego Gas and Electric Company [Member] \| Capital Structure, Long Term Debt [Member] \| Federal Energy Regulatory Commission [Member]
Public Utilities, General Disclosures [Line Items]
Weighting		43.44%
Return on rate base		4.21%
Weighted return on rate base		1.83%
San Diego Gas and Electric Company [Member] \| Capital Structure, Long Term Debt [Member] \| Scenario, Forecast [Member] \| California Public Utilities Commission [Member]
Public Utilities, General Disclosures [Line Items]
Authorized weighting			45.25%
Return on rate base			4.59%
Weighted return on rate base			2.08%
San Diego Gas and Electric Company [Member] \| Capital Structure, Preferred Stock [Member] \| Scenario, Forecast [Member] \| California Public Utilities Commission [Member]
Public Utilities, General Disclosures [Line Items]
Authorized weighting			2.75%
Return on rate base			6.22%
Weighted return on rate base			0.17%
San Diego Gas and Electric Company [Member] \| Capital Structure, Common Equity [Member] \| Federal Energy Regulatory Commission [Member]
Public Utilities, General Disclosures [Line Items]
Weighting		56.56%
Return on rate base		10.05%
Weighted return on rate base		5.68%
San Diego Gas and Electric Company [Member] \| Capital Structure, Common Equity [Member] \| Scenario, Forecast [Member] \| California Public Utilities Commission [Member]
Public Utilities, General Disclosures [Line Items]
Authorized weighting			52.00%
Return on rate base			10.20%
Weighted return on rate base			5.30%
Southern California Gas Company [Member] \| California Public Utilities Commission [Member]
Public Utilities, General Disclosures [Line Items]
Weighted return on rate base		8.02%
Cost of debt		5.77%
Southern California Gas Company [Member] \| Scenario, Forecast [Member] \| California Public Utilities Commission [Member]
Public Utilities, General Disclosures [Line Items]
Weighted return on rate base			7.34%
Authorized weighting			100.00%
Cost of debt			4.33%
Change in cost of debt			(1.44%)
Change in return on rate base			(0.68%)
Southern California Gas Company [Member] \| Capital Structure, Long Term Debt [Member] \| Scenario, Forecast [Member] \| California Public Utilities Commission [Member]
Public Utilities, General Disclosures [Line Items]
Authorized weighting			45.60%
Return on rate base			4.33%
Weighted return on rate base			1.97%
Southern California Gas Company [Member] \| Capital Structure, Preferred Stock [Member] \| Scenario, Forecast [Member] \| California Public Utilities Commission [Member]
Public Utilities, General Disclosures [Line Items]
Authorized weighting			2.40%
Return on rate base			6.00%
Weighted return on rate base			0.14%
Southern California Gas Company [Member] \| Capital Structure, Common Equity [Member] \| Scenario, Forecast [Member] \| California Public Utilities Commission [Member]
Public Utilities, General Disclosures [Line Items]
Authorized weighting			52.00%
Return on rate base			10.05%
Weighted return on rate base			5.23%
Sempra Mexico [Member]
Public Utilities, General Disclosures [Line Items]
Regulatory assets		$ 7

FAIR VALUE MEASUREMENTS - FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unamortized discount (net of premium) and debt issuance costs	$ 202	$ 143
Capital lease obligations and build-to-suit	1,419	877
Level 3 [Member] \| Otay Mesa VIE [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total long-term debt	220	295
Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term amounts due from unconsolidated affiliates	688	598
Long-term amounts due to unconsolidated affiliates	37	35
Total long-term debt	22,067	17,138
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term amounts due from unconsolidated affiliates	695	618
Long-term amounts due to unconsolidated affiliates	35	32
Total long-term debt	21,625	18,409
Fair Value [Member] \| Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term amounts due from unconsolidated affiliates	0	0
Long-term amounts due to unconsolidated affiliates	0	0
Total long-term debt	0	817
Fair Value [Member] \| Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term amounts due from unconsolidated affiliates	648	510
Long-term amounts due to unconsolidated affiliates	35	32
Total long-term debt	21,274	17,134
Fair Value [Member] \| Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term amounts due from unconsolidated affiliates	47	108
Long-term amounts due to unconsolidated affiliates	0	0
Total long-term debt	351	458
San Diego Gas and Electric Company [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unamortized discount (net of premium) and debt issuance costs	49	45
Capital lease obligations	1,272	732
San Diego Gas and Electric Company [Member] \| Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total long-term debt	4,996	4,868
San Diego Gas and Electric Company [Member] \| Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total long-term debt	5,117	5,368
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	4,897	5,073
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	220	295
Southern California Gas Company [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unamortized discount (net of premium) and debt issuance costs	32	24
Capital lease obligations	3	1
Southern California Gas Company [Member] \| Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total long-term debt	3,459	3,009
Southern California Gas Company [Member] \| Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total long-term debt	3,505	3,192
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
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	3,505	3,192
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

EMPLOYEE BENEFIT PLANS - PROFIT SHARING PLANS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Chilquinta Energia Profit Sharing [Member]
Profit Sharing Plans [Line Items]
Recorded Annual Profit Sharing Expense	$ 7	$ 7	$ 5
Luz del Sur Profit Sharing [Member]
Profit Sharing Plans [Line Items]
Recorded Annual Profit Sharing Expense	$ 13	$ 12	$ 10

DERIVATIVE FINANCIAL INSTRUMENTS - NOTIONALS AMOUNTS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cross-currency swaps [Member]
Derivatives, Fair Value [Line Items]
Notional amount of derivative liability	$ 306	$ 408
Other foreign currency derivatives [Member]
Derivatives, Fair Value [Line Items]
Notional amount of derivative liability	1,158	345
Cash Flow Hedging [Member] \| Interest rate instruments [Member]
Derivatives, Fair Value [Line Items]
Notional amount of derivative liability	594	861
San Diego Gas and Electric Company [Member] \| Cash Flow Hedging [Member] \| Interest rate instruments [Member]
Derivatives, Fair Value [Line Items]
Notional amount of derivative liability	142	$ 295
OMEC LLC [Member] \| Interest Rate Swap, maturing on October 31, 2019 [Member]
Derivatives, Fair Value [Line Items]
Notional amount of derivative liability	159
OMEC LLC [Member] \| Swaption [Member]
Derivatives, Fair Value [Line Items]
Notional amount of derivative liability	$ 142
Minimum [Member] \| Cross-currency swaps [Member]
Derivatives, Fair Value [Line Items]
Derivative, Maturity Date	Dec. 31, 2019	Dec. 31, 2018
Minimum [Member] \| Other foreign currency derivatives [Member]
Derivatives, Fair Value [Line Items]
Derivative, Maturity Date	Dec. 31, 2019	Dec. 31, 2018
Minimum [Member] \| Cash Flow Hedging [Member] \| Interest rate instruments [Member]
Derivatives, Fair Value [Line Items]
Derivative, Maturity Date	Dec. 31, 2019	Dec. 31, 2018
Minimum [Member] \| San Diego Gas and Electric Company [Member] \| Cash Flow Hedging [Member] \| Interest rate instruments [Member]
Derivatives, Fair Value [Line Items]
Derivative, Maturity Date	Dec. 31, 2019	Dec. 31, 2018
Maximum [Member] \| Cross-currency swaps [Member]
Derivatives, Fair Value [Line Items]
Derivative, Maturity Date	Dec. 31, 2023	Dec. 31, 2023
Maximum [Member] \| Other foreign currency derivatives [Member]
Derivatives, Fair Value [Line Items]
Derivative, Maturity Date	Dec. 31, 2020	Dec. 31, 2019
Maximum [Member] \| Cash Flow Hedging [Member] \| Interest rate instruments [Member]
Derivatives, Fair Value [Line Items]
Derivative, Maturity Date	Dec. 31, 2032	Dec. 31, 2032
Maximum [Member] \| San Diego Gas and Electric Company [Member] \| Cash Flow Hedging [Member] \| Interest rate instruments [Member]
Derivatives, Fair Value [Line Items]
Derivative, Maturity Date	Dec. 31, 2019	Dec. 31, 2019

SEMPRA ENERGY - SHAREHOLDERS' EQUITY AND EARNINGS PER SHARE - COMMON STOCK ACTIVITY (Details) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Earnings Per Share [Abstract]
Common stock, shares authorized (in shares)	750,000,000	750,000,000
Common stock par value (in dollars per share)	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common shares outstanding, January 1	251,358,977	250,152,514	248,298,080
Shares issued under forward sale agreements	21,175,473	0	0
RSUs vesting	509,042	362,022	1,363,555
Stock options exercised	138,861	164,454	167,742
Savings plan issuance	553,036	567,428	653,607
Common stock investment plan	231,242	254,047	266,056
Issuance of RSUs held in our Deferred Compensation Plan	3,357	7,811	0
Shares repurchased	(200,475)	(149,299)	(596,526)
Common shares outstanding, December 31	273,769,513	251,358,977	250,152,514

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - CASH AND CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Presentation Of Restricted Cash [Line Items]
Restricted cash	$ 56,000,000	$ 76,000,000
Cash and cash equivalents	190,000,000	288,000,000
Restricted cash, current	35,000,000	62,000,000
Restricted cash, noncurrent	21,000,000	14,000,000
Total cash, cash equivalents and restricted cash on the Consolidated Statements of Cash Flows	246,000,000	364,000,000	$ 425,000,000	$ 450,000,000
SDG&E [Member]
Presentation Of Restricted Cash [Line Items]
Restricted cash	29,000,000	17,000,000
Sempra Mexico [Member]
Presentation Of Restricted Cash [Line Items]
Restricted cash	27,000,000	56,000,000
Sempra Renewables [Member]
Presentation Of Restricted Cash [Line Items]
Restricted cash		3,000,000
South America Utilities [Member]
Presentation Of Restricted Cash [Line Items]
Restricted cash	0	0
San Diego Gas and Electric Company [Member]
Presentation Of Restricted Cash [Line Items]
Cash and cash equivalents	8,000,000	12,000,000
Restricted cash, current	11,000,000	6,000,000
Restricted cash, noncurrent	18,000,000	11,000,000
Total cash, cash equivalents and restricted cash on the Consolidated Statements of Cash Flows	$ 37,000,000	$ 29,000,000	$ 20,000,000	$ 43,000,000

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - RESTRICTED NET ASSETS (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)
Significant Restrictions of Subsidiaries [Line Items]
Undistributed earnings of equity investments	$ 332
Sempra Texas Utility [Member] \| Oncor Holdings Electric Delivery Company LLC [Member]
Significant Restrictions of Subsidiaries [Line Items]
Ownership percentage in equity method investee	100.00%
Sempra Texas Utility [Member] \| Oncor Electric Delivery Company LLC [Member]
Significant Restrictions of Subsidiaries [Line Items]
Ownership percentage in equity method investee	80.25%
Sempra South American Utilities [Member] \| Luz Del Sur [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted net assets of consolidated subsidiaries	$ 35
Sempra Mexico [Member] \| Mexican Subsidiaries [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted net assets of consolidated subsidiaries	153
Sempra Mexico [Member] \| IEnova Pipelines [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted net assets of consolidated subsidiaries	10
Sempra Mexico [Member] \| Ventika [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted net assets of consolidated subsidiaries	14
Sempra Mexico [Member] \| Energia Sierra Juarez Wind Project [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted net assets of consolidated subsidiaries	$ 14
Ownership percentage in equity method investee	50.00%
Sempra Mexico [Member] \| TAG Pipeline Norte [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted net assets of consolidated subsidiaries	$ 89
Ownership percentage in equity method investee	50.00%
Sempra Renewables [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted net assets of consolidated subsidiaries	$ 122
Sempra Renewables [Member] \| Joint Venture One [Member]
Significant Restrictions of Subsidiaries [Line Items]
Ownership percentage in equity method investee	50.00%
Sempra LNG & Midstream [Member] \| Cameron LNG Holdings [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted net assets of consolidated subsidiaries	$ 8,700
Consolidated Entities [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted net assets of consolidated subsidiaries	9,300
Unconsolidated Entities [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted net assets of consolidated subsidiaries	18,600
San Diego Gas and Electric Company [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted net assets of consolidated subsidiaries	5,500
Amount available for dividend distribution and loans without prior approval from regulatory agency	$ 552
Authorized percentage of equity	52.00%
Southern California Gas Company [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted net assets of consolidated subsidiaries	$ 3,600
Amount available for dividend distribution and loans without prior approval from regulatory agency	$ 618
Authorized percentage of equity	52.00%
California Utilities [Member]
Significant Restrictions of Subsidiaries [Line Items]
Maximum ratio of indebtedness to total capitalization	0.65
Sempra Texas Utility [Member]
Significant Restrictions of Subsidiaries [Line Items]
Maximum ratio of indebtedness to total capitalization	0.65
Plan percentage of capital structure allocated to debt	57.50%
Plan percentage of capital structure allocated to equity	42.50%
Oncor Electric Delivery Company LLC [Member]
Significant Restrictions of Subsidiaries [Line Items]
Restricted net assets of consolidated subsidiaries	$ 9,700
Minimum [Member] \| San Diego Gas and Electric Company [Member]
Significant Restrictions of Subsidiaries [Line Items]
Minimum common equity ratio	30.00%

SAN ONOFRE NUCLEAR GENERATING STATION (SONGS)

12 Months Ended

Dec. 31, 2018

Regulated Operations [Abstract]

San Onofre Nuclear Generating Station (SONGS)

REGULATORY MATTERS

REGULATORY ASSETS AND LIABILITIES

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



REGULATORY ASSETS (LIABILITIES)
(Dollars in millions)
	December 31,
	2018			2017
SDG&E:
Fixed-price contracts and other derivatives	$	(150	)	$	96
Deferred income taxes refundable in rates	(236		)	(281		)
Pension and other postretirement benefit plan obligations	186			153
Removal obligations	(1,848		)	(1,846		)
Unamortized loss on reacquired debt	7			9
Environmental costs	28			29
Sunrise Powerlink fire mitigation	120			119
Regulatory balancing accounts⁽¹⁾
Commodity – electric	(8		)	82
Gas transportation	45			22
Safety and reliability	70			48
Public purpose programs	(62		)	(70		)
Other balancing accounts	145			233
Other regulatory liabilities, net⁽²⁾	(177		)	(70		)
Total SDG&E	(1,880		)	(1,476		)
SoCalGas:
Pension and other postretirement benefit plan obligations	470			513
Employee benefit costs	49			45
Removal obligations	(833		)	(924		)
Deferred income taxes refundable in rates	(336		)	(437		)
Unamortized loss on reacquired debt	7			8
Environmental costs	28			22
Workers’ compensation	9			12
Regulatory balancing accounts⁽¹⁾
Commodity – gas, including transportation	196			151
Safety and reliability	332			266
Public purpose programs	(325		)	(274		)
Other balancing accounts	(68		)	(114		)
Other regulatory liabilities, net⁽²⁾	(130		)	(64		)
Total SoCalGas	(601		)	(796		)
Sempra Mexico:
Deferred income taxes recoverable in rates	81			83
Other regulatory assets	6			—
Total Sempra Energy Consolidated	$	(2,394	)	$	(2,189	)


⁽¹⁾	At December 31, 2018 and 2017, the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $78 million and $63 million, respectively. At December 31, 2018 and 2017, the noncurrent portion of regulatory balancing accounts – net undercollected for SoCalGas was $185 million and $118 million, respectively.


⁽²⁾	Includes regulatory assets earning a rate of return.

In the table above:

▪

Regulatory assets arising from fixed-price contracts and other derivatives are offset by corresponding liabilities arising from purchased power and natural gas commodity and transportation contracts. The regulatory asset is increased/decreased based on changes in the fair market value of the contracts. It is also reduced as payments are made for commodities and services under these contracts. We discuss fixed-price contracts and other derivatives further in Note 11.

▪

Deferred income taxes refundable/recoverable in rates are based on current regulatory ratemaking and income tax laws. SDG&E, SoCalGas and Sempra Mexico expect to refund/recover net regulatory liabilities/assets related to deferred income taxes over the lives of the assets that give rise to the related accumulated deferred income tax balances. Regulatory assets include certain income tax benefits associated with flow-through repair allowance deductions, which we discuss further below.


▪	Regulatory assets/liabilities related to pension and other postretirement benefit plan obligations are offset by corresponding liabilities/assets and are being recovered in rates as the plans are funded.


▪	The regulatory asset related to employee benefit costs represents our liability associated with long-term disability insurance that will be recovered from customers in future rates as expenditures are made.


▪	Regulatory liabilities from removal obligations represent cumulative amounts collected in rates for future asset removal costs in excess of cumulative amounts incurred (or paid).


▪	Regulatory assets related to unamortized loss on reacquired debt are recovered over the remaining amortization periods of the losses on reacquired debt. These periods range from 1 year to 9 years for SDG&E and from 3 years to 7 years for SoCalGas.


▪	Regulatory assets related to environmental costs represent the portion of our environmental liability recognized at the end of the period in excess of the amount that has been recovered through rates charged to customers. We expect this amount to be recovered in future rates as expenditures are made. We discuss environmental issues further in Note 16.


▪	The regulatory asset related to Sunrise Powerlink fire mitigation is offset by a corresponding liability for the funding of a trust to cover the mitigation costs. SDG&E expects to recover the regulatory asset in rates as the trust is funded over a remaining 51-year period. We discuss the trust further in Note 16.


▪	The regulatory asset related to workers’ compensation represents accrued costs for future claims that will be recovered from customers in future rates as expenditures are made.

▪

Over- and undercollected regulatory balancing accounts reflect the difference between customer billings and recorded or CPUC-authorized costs, including commodity costs. Depreciation and return on rate base may also be included in certain accounts. Amounts in the balancing accounts are recoverable (receivable) or refundable (payable) in future rates, subject to CPUC approval. Absent balancing account treatment, variations in covered costs, such as the cost of fuel supply and certain O&M costs, from amounts approved by the CPUC would increase volatility in utility earnings. Balancing account treatment eliminates the volatility in earnings that would otherwise result from variances in the covered costs compared to the authorized amounts.

Amortization expense on regulatory assets for the years ended December 31, 2018, 2017 and 2016 was $5 million, $50 million and $65 million, respectively, at Sempra Energy Consolidated, $2 million, $49 million and $63 million, respectively, at SDG&E, and $3 million, $1 million and $2 million, respectively, at SoCalGas.

CALIFORNIA UTILITIES

CPUC General Rate Case

The CPUC uses a GRC proceeding to set sufficient rates to allow the California Utilities to recover their reasonable cost of O&M and to provide the opportunity to realize their authorized rates of return on their investment.

2019 General Rate Case

On October 6, 2017, SDG&E and SoCalGas filed their 2019 GRC applications requesting CPUC approval of test year revenue requirements for 2019 and attrition year adjustments for 2020 through 2022. SDG&E and SoCalGas are seeking revenue requirements for 2019 of $2.203 billion and $2.937 billion, respectively, which is an increase of $221 million and $481 million over their respective 2018 revenue requirements (the 2019 proposed and 2018 actual revenue requirements reflect the impact of various updates made during the course of the proceeding). The California Utilities are proposing post-test year revenue requirement annual attrition percentages that are estimated to result in annual increases of approximately 5 percent to 7 percent at SDG&E and approximately 6 percent to 8 percent at SoCalGas. The original GRC applications filed in October 2017 did not reflect the impact of the TCJA, which we discuss below in “2016 General Rate Case” and in Note 8. In April 2018, SDG&E and SoCalGas updated their applications to reflect the impact of the TCJA and filed a joint proposal to address the impacts. The TCJA impact to SDG&E is a reduction of approximately $58 million to its 2019 test year revenue requirement; however, SDG&E’s 2019 requested revenue requirement is unchanged as we evaluate potentially higher costs associated with mitigating wildfire risks. The TCJA impact to SoCalGas’ 2019 requested revenue requirement is a reduction of approximately $58 million, which is reflected in its updated request.

During the course of the proceeding, Cal PA recommended 2019 revenue requirements of $1.918 billion and $2.695 billion for SDG&E and SoCalGas, respectively, which is a net decrease of $64 million for SDG&E and a net increase of $239 million for SoCalGas compared to the 2018 revenue requirements. Cal PA proposes a three-year annual attrition percentage of 4 percent for

SDG&E and a range of 4 percent to 5 percent for SoCalGas. Cal PA recommends addressing SDG&E’s potential ownership of OMEC in a separate proceeding. As a result, Cal PA’s proposed 2019 revenue requirement does not include the estimated $68 million associated with owning and operating the generating facility. SDG&E’s potential acquisition of OMEC is subject to a CPUC-approved agreement under which the current owner of the facility can exercise a put option at a designated price. As we discuss in Note 1, SDG&E and OMEC LLC signed a resource adequacy capacity agreement in October 2018, which, if approved by the CPUC on a final and non-appealable basis before the expiration of the put option on April 1, 2019, would result in OMEC LLC waiving its right to exercise the put option. TURN and other intervenors oppose various components of our revenue requirement requests in the 2019 GRC applications.

As part of the 2019 GRC, the CPUC reviewed the California Utilities’ interim accountability reports, which compare the authorized and actual spending for certain safety-related activities for 2014 through 2016. In June 2017, SDG&E and SoCalGas filed their first interim accountability reports comparing authorized and actual spending in 2014 and 2015 for certain safety-related activities. Similar data for 2016 was provided with the 2019 GRC application filings in a second interim accountability report filed in October 2017. The stated purpose of the initial interim accountability reports is to provide data and metrics for key safety and risk mitigation areas that will be considered in the 2019 GRC. In October 2018, the CPUC confirmed that the 2014, 2015 and 2016 interim accountability reports were compliant with the requirements and also recommended improvements for subsequent reports.

The results of the rate case may materially and adversely differ from what is contained in the GRC applications.

We expect a preliminary decision from the CPUC in the first half of 2019.

Risk Assessment Mitigation Phase Reporting and Impact on the 2019 GRC Application Filings

In December 2014, the CPUC issued a decision incorporating a risk-based decision-making framework into all future GRC application filings for major natural gas and electric utilities in California. In November 2016, as part of the new framework, SDG&E and SoCalGas filed their first RAMP report presenting a comprehensive assessment of their key safety risks and proposed activities for mitigating such risks. The report details these key safety risks, which include critical operational issues such as natural gas pipeline safety and wildfire safety, and addresses their classification, scoring, mitigation, alternatives, safety culture, quantitative analysis, data collection and lessons learned. SDG&E and SoCalGas included funding requests in their respective 2019 GRC filings for proposed projects or activities outlined in their RAMP reports. In April 2018, the CPUC granted SDG&E’s and SoCalGas’ motion to close the proceeding as all RAMP procedures had been completed. In December 2018, the CPUC approved a joint settlement agreement that establishes the required elements for the risk and mitigation analysis to be used in RAMP and GRC proceedings with minor modifications.

Senate Bill 549. SB 549 was signed into law in September 2017 and became effective January 1, 2018. The bill requires that SDG&E and SoCalGas (as electric and gas corporations) annually notify the CPUC when revenue authorized by the CPUC for maintenance, safety or reliability is redirected to other purposes. Beginning in December 2018, the CPUC began incorporating and will continue to incorporate this requirement into the accountability reports.

2016 General Rate Case

In June 2016, the CPUC issued a final decision in the 2016 GRC. The 2016 GRC FD adopted a 2016 revenue requirement of $1.791 billion for SDG&E and $2.204 billion for SoCalGas. The 2016 GRC FD was effective retroactive to January 1, 2016, and the California Utilities recorded the retroactive impacts in the second quarter of 2016. The 2016 GRC FD also required certain refunds to be paid to customers and establishes a two-way income tax expense memorandum account, each discussed below.

The 2016 GRC FD results in certain accounting impacts associated with flow-through income tax repairs deductions. 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 reallocated the economic benefit of this tax deduction forecasting difference to ratepayers. Accordingly, revenues corresponding to income tax repair deductions that exceeded forecasted amounts were ordered to be refunded to customers. Pursuant to this refund requirement, in 2016, SDG&E and SoCalGas recorded regulatory liabilities for these amounts, resulting in reductions to revenue of $52 million ($31 million after tax) and $83 million ($49 million after tax), respectively.

The 2016 GRC FD required SDG&E and SoCalGas to each establish a two-way income tax expense memorandum account to track certain revenue variances resulting from certain differences between the income tax expense forecasted in the 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.

At December 31, 2018, the recorded regulatory liability associated with these tracked amounts totaled $89 million and $94 million for SDG&E and SoCalGas, respectively. The recorded liability is primarily related to lower income tax expense incurred than was forecasted in the GRC relating to tax repairs deductions, self-developed software deductions and certain book-over-tax depreciation. The tracking accounts will remain open until the CPUC decides to close the accounts, which we expect will be reviewed in the 2019 GRC proceedings.

The 2016 GRC FD revenue requirement was authorized using a federal income tax rate of 35 percent. As a result of the TCJA, the federal income tax rate became 21 percent effective January 1, 2018. Since SDG&E and SoCalGas continue to collect authorized revenues based on a 35 percent tax rate, SDG&E and SoCalGas are recording revenue deferrals, aligned with authorized seasonality factors, that reflect the estimated reduction in the revenue requirement. As of December 31, 2018, SDG&E and SoCalGas recorded regulatory liabilities of $75 million and $68 million, respectively, in anticipation of amounts that will benefit customers in future rates. SDG&E also recorded a $67 million regulatory liability at December 31, 2018, relating to its FERC jurisdictional rates, in anticipation of amounts that will benefit customers in future rates for the decrease in the federal income tax rate.

CPUC Cost of Capital

In September 2017, SDG&E and SoCalGas filed advice letters to update their cost of capital for the actual cost of long-term debt through August 2017 and forecasted cost through 2018. SDG&E and SoCalGas did not file for changes to preferred stock costs, because no issuances of preferred stock through 2018 were anticipated.

In October 2017, the CPUC approved the embedded cost of debt presented in advice letters filed by SDG&E and SoCalGas, resulting in a revised return on rate base for SDG&E of 7.55 percent and for SoCalGas of 7.34 percent, effective January 1, 2018, as depicted in the table below:



AUTHORIZED COST OF CAPITAL AND RATE STRUCTURE – CPUC

SDG&E							SoCalGas
Authorized weighting		Return on rate base		Weighted return on rate base			Authorized weighting		Return on rate base		Weighted return on rate base
45.25	%	4.59	%	2.08	%	Long-Term Debt	45.60	%	4.33	%	1.97	%
2.75		6.22		0.17		Preferred Stock	2.40		6.00		0.14
52.00		10.20		5.30		Common Equity	52.00		10.05		5.23
100.00	%			7.55	%		100.00	%			7.34	%

The changes to the embedded cost of debt and return on rate base resulting from the updates included in the filed advice letters are summarized below:



CHANGES TO THE EMBEDDED COST OF DEBT

	SDG&E						SoCalGas
	Cost of debt			Return on rate base			Cost of debt			Return on rate base
Previously	5.00		%	7.79		%	5.77		%	8.02		%
Authorized, effective January 1, 2018	4.59		%	7.55		%	4.33		%	7.34		%
Differences	(41	)	bps	(24	)	bps	(144	)	bps	(68	)	bps

The costs of long-term debt and the ROEs shown above will remain in effect through December 31, 2019. The cost of capital changes will also apply to capital expenditures in 2019 for incremental projects not funded through the GRC revenue requirement. SDG&E and SoCalGas are required to file cost of capital applications by the end of April 2019 for a January 1, 2020 implementation date. The automatic CCM did not operate in 2018 and will be evaluated in the 2019 cost of capital proceeding.

SDG&E

FERC Rate Matters and Cost of Capital

SDG&E files separately with the FERC for its authorized ROE on FERC-regulated electric transmission operations and assets.

SDG&E’s current estimated FERC return on rate base under the TO4 formula rate request filing is 7.51 percent based on its capital structure as follows:



SDG&E COST OF CAPITAL AND RATE STRUCTURE – FERC

	Weighting		Return on rate base		Weighted return on rate base
Long-Term Debt	43.44	%	4.21	%	1.83	%
Common Equity	56.56		10.05		5.68
	100.00	%			7.51	%

FERC Formulaic Rate Filing

SDG&E submitted its TO5 filing with the FERC in October 2018 to be effective January 1, 2019, subject to refund. This proceeding will establish the revenue requirement, including rate of return, for SDG&E’s FERC-regulated electric transmission operations and assets. SDG&E’s TO5 filing proposes to continue most aspects of its existing FERC-authorized formula rate. SDG&E’s TO5 filing is requesting: (1) rates to be determined by a base period of historical costs and a forecast of capital investments, (2) a true-up period, which is similar to a balancing account that is designed to provide SDG&E earnings of no more and no less than its actual cost of service including its authorized return on investment, (3) a true-up of accumulated deferred income tax and (4) a refund of amounts collected in rates in 2018 that presumed a 35 percent federal income tax rate. The net impact of our TO5 filing is a revenue requirement of $911 million, an increase in rates of $88 million, or 10.6 percent, above 2018’s revenue requirement.

This TO5 proceeding will also set SDG&E’s authorized FERC ROE. SDG&E’s current authorized FERC ROE is 10.05 percent, and SDG&E’s TO5 filing proposes a FERC ROE of 11.2 percent. On December 31, 2018, the FERC issued its order accepting and suspending the TO5 filing and establishing hearing and settlement judge procedures. In the order, the FERC suspended the TO5 filing for five months, during which the existing TO4 rates will remain in effect. After the suspension period ends, the proposed TO5 rates will take effect, subject to refund and the outcome of the hearing and settlement judge procedures. A FERC settlement judge has been appointed, and we expect settlement conferences to begin in the first quarter of 2019.

SEMPRA SOUTH AMERICAN UTILITIES

Luz del Sur serves primarily regulated customers in Peru and revenues are based on rates set by the OSINERGMIN. The rates are reviewed and adjusted every four years. OSINERGMIN’s final distribution rate-setting resolution for the 2018-2022 period was published on October 16, 2018 and went into effect on November 1, 2018. The resolution decreases the rates Luz del Sur can charge its regulated customers, resulting in a modest reduction in regulated revenues per annum. Luz del Sur submitted a petition for reconsideration to the regulator in November 2018 and obtained a favorable response in late December 2018 that reduces the negative impact to rates from the resolution published on October 16, 2018. The adjustment is retroactive to November 1, 2018.

Chilquinta Energía serves regulated and unregulated customers in Chile. Distribution revenues and rates are reviewed and set by the CNE every four years; the most recent review process was completed in November 2016, covering the period from November 2016 through October 2020. On September 28, 2018, a distribution interim rate case, which included an adjustment to rates, was approved to allow adequate recovery of the incremental investment, including the deployment of smart meters to all customers, necessary to comply with the new distribution standards set by the CNE in December 2017. These interim adjusted rates will be applicable from September 28, 2018 through October 2020.

Chilquinta Energía’s most recent review process for zonal transmission rates was completed in September 2017. The final decree approving the rates was published on October 5, 2018. The authorized transmission rates will cover the period from January 2018 through December 2019.

As we discuss in Note 5, Chilquinta Energía acquired CTNG in December 2018. CTNG owns both national and zonal transmission assets. CTNG’s most recent review process for national transmission rates was completed in 2015 and covers the period from January 2016 to December 2019. The review process for zonal transmission rates was completed in 2017 and covers the periods from January 2018 to December 2019.

SEMPRA MEXICO

On July 23, 2018, the CRE adjusted Ecogas’ natural gas distribution rates charged to end-users in 2014 through 2016. Ecogas recorded a regulatory asset of $7 million for this tariff adjustment, which is recoverable in rates effective September 1, 2018 through December 31, 2020.SAN ONOFRE NUCLEAR GENERATING STATION

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, as a result of issues with the steam generators used in the facility, 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 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 costs. SDG&E’s share of operating expenses is included in Sempra Energy’s and SDG&E’s Consolidated Statements of Operations.

SONGS STEAM GENERATOR REPLACEMENT PROJECT

The replacement steam generators, which caused a water leak due to unexpected tube wear, were designed and provided by MHI. In 2013, Edison instituted arbitration proceedings against MHI seeking recovery of damages resulting from the issues with the steam generators used in SONGS Units 2 and 3. The other SONGS co-owners, SDG&E and the City of Riverside, participated as claimants and respondents.

On March 13, 2017, the International Chamber of Commerce International Court of Arbitration Tribunal (the Tribunal) overseeing the arbitration found MHI liable for breach of contract, subject to a contractual limitation of liability, and rejected claimants’ other claims. The Tribunal awarded $118 million in damages to the SONGS co-owners, but determined that MHI was the prevailing party and awarded it 95 percent of its arbitration costs. The damage award is offset by these costs, resulting in a net award of approximately $60 million in favor of the SONGS co-owners. SDG&E’s specific allocation of the damage award is $24 million reduced by costs awarded to MHI of approximately $12 million, resulting in a net damage award of $12 million, which was paid by MHI to SDG&E in March 2017. In accordance with the Amended Settlement Agreement discussed below, SDG&E recorded the proceeds from the MHI arbitration by reducing O&M for previously incurred legal costs of $11 million, and shared the remaining $1 million equally between ratepayers and shareholders.

SETTLEMENT AGREEMENT TO RESOLVE THE CPUC’S ORDER INSTITUTING INVESTIGATION INTO THE SONGS OUTAGE

In 2012, in response to the SONGS 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.

In 2014, the CPUC issued a final decision approving an Amended Settlement Agreement which provided for various disallowances, refunds and rate recoveries, including authorizing SDG&E to recover in rates its remaining investment in SONGS, excluding its investment in the Steam Generator Replacement Project.

In 2016, the CPUC issued two procedural rulings: the first, to reopen the record of the OII to address the issue of whether the Amended Settlement Agreement is reasonable and in the public interest, and the second, directing parties to the SONGS OII to determine whether an agreement could be reached to modify the Amended Settlement Agreement previously approved by the CPUC, to resolve allegations that unreported ex parte communications between Edison and the CPUC resulted in an unfair advantage at the time the settlement agreement was negotiated.

In July 2018, the CPUC approved a Revised Settlement Agreement among SDG&E, Edison, Cal PA, TURN and other intervenors that resolved all issues under consideration in the SONGS OII and made one modification to the Amended Settlement Agreement to remove the requirement to fund a GHG emissions reduction research program. In August 2018, parties to the Revised Settlement Agreement submitted a notice that they accepted the settlement agreement, as modified.

In connection with the Revised Settlement Agreement, and in exchange for the release of certain SONGS-related claims, SDG&E and Edison entered into the Utility Shareholder Agreement, described below.

Disallowances, Refunds and Recoveries

Under the Revised Settlement Agreement, SDG&E and Edison ceased rate recovery of SONGS costs as authorized under the Amended Settlement Agreement as of December 19, 2017, when the present value of their combined remaining SONGS regulatory assets equaled $775 million, of which $152 million represents SDG&E’s share. Under the Utility Shareholder Agreement, Edison is obligated to pay SDG&E the full amount of SDG&E’s revenue requirement not recovered from ratepayers, as described below. In October 2018, SDG&E began refunding to customers SONGS-related amounts recovered in rates after December 19, 2017.

Utility Shareholder Agreement

In January 2018, SDG&E and Edison entered into the Utility Shareholder Agreement under which Edison has an obligation to compensate SDG&E for the revenue requirement amounts that SDG&E will no longer recover because of the Revised Settlement Agreement. In exchange for Edison’s reimbursement, the parties mutually released each other from the “SONGS Issues,” a defined term that consists of 18 broad categories. The effect of the agreement is that the parties released each other from any and all claims that each party had or could have asserted related to the steam generator replacement failure and its aftermath. The Utility Shareholder Agreement became effective upon CPUC approval of the Revised Settlement Agreement. Edison’s payment obligation commenced in October 2018, and amounts are due to SDG&E quarterly thereafter until April 2022. At December 31, 2018, SDG&E has a receivable from Edison, including accrued interest, totaling $124 million, with $40 million classified as current and $84 million classified as noncurrent. This receivable reflects amounts Edison is obligated to pay to SDG&E in lieu of amounts SDG&E would have collected from ratepayers associated with the SONGS regulatory asset.

NUCLEAR DECOMMISSIONING AND FUNDING

As a result of Edison’s decision to permanently retire SONGS Units 2 and 3, Edison began the decommissioning phase of the plant. Decommissioning of Unit 1, removed from service in 1992, is largely complete. The remaining work for Unit 1 will be done once Units 2 and 3 are dismantled and the spent fuel is removed from the site. Edison contracted with a JV of AECOM and EnergySolutions (known as SONGS Decommissioning Solutions) as the general contractor to complete the dismantlement of SONGS. The majority of the dismantlement work is expected to take 10 years. SDG&E is responsible for approximately 20 percent of the total contract price.

In accordance with state and federal requirements and regulations, SDG&E has assets held in the NDT to fund its share of decommissioning costs for SONGS Units 1, 2 and 3. 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 NDT are invested in accordance with CPUC regulations. The NDT assets are presented on the Sempra Energy and SDG&E Consolidated Balance Sheets at fair value with the offsetting credits recorded in noncurrent Regulatory Liabilities.

In March 2018, SDG&E and Edison jointly filed an application requesting CPUC approval of revised remaining decommissioning cost estimates (for costs estimated to be incurred in 2018 and beyond) for SONGS Unit 1 of $207 million (in 2014 dollars), of which SDG&E’s share is $41 million, and SONGS Units 2 and 3 of $3.2 billion (in 2014 dollars), of which SDG&E’s share is $638 million. In addition, SDG&E has estimated internal decommissioning costs (for costs estimated to be incurred in 2018 and beyond) of $3 million (in 2014 dollars) for SONGS Unit 1 and $43 million (in 2014 dollars) for SONGS Units 2 and 3. 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. SDG&E has received authorization from the CPUC to access NDT funds of up to $455 million for 2013 through 2019 (2019 forecasted) SONGS decommissioning costs. This includes up to $93 million authorized by the CPUC in January 2019 to be withdrawn from the NDT for forecasted 2019 SONGS Units 2 and 3 costs as decommissioning costs are incurred. In December 2018, the CPUC issued a final decision finding the decommissioning cost estimates for SONGS Unit 1 generally reasonable with certain disallowances. The decision also found $136 million (in 2014 dollars) of SONGS Units 2 and 3 decommissioning expenses for 2014 and $222 million (in 2014 dollars) of SONGS Units 2 and 3 decommissioning expenses for 2015 to be reasonable.

In December 2016, the IRS and the U.S. Department of the Treasury issued proposed regulations that clarify the definition of “nuclear decommissioning costs,” which are costs that may be paid for or reimbursed from a qualified trust fund. The proposed regulations state that costs related to the construction and maintenance of independent spent fuel management installations are included in the definition of “nuclear decommissioning costs.” The proposed regulations will be effective prospectively once they are finalized; however, the IRS has stated that it will not challenge taxpayer positions consistent with the proposed regulations for taxable years ending on or after the date the proposed regulations were issued. SDG&E is awaiting the adoption of, or additional refinement to, the proposed regulations before determining whether the proposed regulations will allow SDG&E to access the NDT funds for reimbursement or payment of the spent fuel management costs incurred in 2017 and subsequent years. Further clarification of the proposed regulations could enable SDG&E to access the NDT to recover spent fuel management costs before Edison reaches final settlement with the DOE regarding the DOE’s reimbursement of these costs. Historically, the DOE’s reimbursements of spent fuel storage costs have not resulted in timely or complete recovery of these costs. We discuss the DOE’s responsibility for spent nuclear fuel below. The IRS held public hearings on the proposed regulations in October 2017. It is unclear when clarification of the proposed regulations might be provided or when the proposed regulations will be finalized.

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 shown on the Sempra Energy and SDG&E Consolidated Balance Sheets at fair value with the offsetting credits recorded in noncurrent Regulatory Liabilities.

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 12.



NUCLEAR DECOMMISSIONING TRUSTS
(Dollars in millions)
	Cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
At December 31, 2018:
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies⁽¹⁾	$	52	$	1	$	—		$	53
Municipal bonds⁽²⁾	266		4		(1		)	269
Other securities⁽³⁾	238		1		(5		)	234
Total debt securities	556		6		(6		)	556
Equity securities	168		253		(10		)	411
Cash and cash equivalents	7		—		—			7
Total	$	731	$	259	$	(16	)	$	974
At December 31, 2017:
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	$	54	$	—	$	—		$	54
Municipal bonds	245		7		(2		)	250
Other securities	215		3		(1		)	217
Total debt securities	514		10		(3		)	521
Equity securities	171		326		(1		)	496
Cash and cash equivalents	16		—		—			16
Total	$	701	$	336	$	(4	)	$	1,033


⁽¹⁾	Maturity dates are 2019-2048.


⁽²⁾	Maturity dates are 2019-2056.


⁽³⁾	Maturity dates are 2019-2064.

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



SALES OF SECURITIES IN THE NDT
(Dollars in millions)
	Years ended December 31,
	2018			2017			2016
Proceeds from sales	$	890		$	1,314		$	1,134
Gross realized gains	42			157			111
Gross realized losses	(10		)	(14		)	(29		)

Net unrealized gains and losses, as well as realized gains and losses that are reinvested in the NDT, are included in noncurrent Regulatory Liabilities on Sempra Energy’s and SDG&E’s Consolidated Balance Sheets. We determine the cost of securities in the trusts on the basis of specific identification.

ASSET RETIREMENT OBLIGATION AND SPENT NUCLEAR FUEL

SDG&E’s ARO related to decommissioning costs for the SONGS units was $626 million at December 31, 2018. That amount includes the cost to decommission Units 2 and 3, and the remaining cost to complete the decommissioning of Unit 1, which is substantially complete. The ARO at December 31, 2018 for all three units is based on a cost study prepared in 2017 that is pending CPUC approval. The ARO at December 31, 2018 for Units 2 and 3 reflects the acceleration of the start of decommissioning of these units as a result of the early closure of the plant. SDG&E’s share of total decommissioning costs in 2018 dollars is approximately $810 million.

U.S. DEPARTMENT OF ENERGY NUCLEAR FUEL DISPOSAL

Spent nuclear fuel from SONGS is currently stored on-site in an ISFSI licensed by the NRC or temporarily in spent fuel pools. In October 2015, the CCC approved Edison’s application for the proposed expansion of the ISFSI at SONGS. The ISFSI expansion began construction in 2016 and is expected to be fully loaded with spent fuel in 2019 and to 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. Until then, SONGS owners are responsible for interim storage of spent nuclear fuel at SONGS.

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 results in 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. In April 2016, Edison executed a spent fuel settlement agreement with the DOE for $162 million covering damages incurred from 2006 through 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 O&M cost balancing account.

Under the terms of the 2016 spent fuel settlement agreement, Edison filed a claim with the DOE on behalf of the SONGS co-owners in 2016 for spent fuel management costs incurred in 2014 and 2015 and a claim in 2017 for costs incurred in 2016. The DOE settled these claims with Edison in 2017 and 2018, respectively. In May 2017, SDG&E received its $9 million respective share from Edison of the settlement for 2014 and 2015 costs incurred. In July 2018, SDG&E received its $9 million share from Edison of the settlement for 2016 costs incurred. SDG&E recorded the proceeds of these settlements in balancing accounts or as reductions to regulatory assets for the benefit of ratepayers.

The 2016 spent fuel settlement agreement governs the submission of claims for costs incurred through December 31, 2016. It is unclear whether Edison will enter into a new settlement with the DOE or pursue litigation claims for spent fuel management costs incurred on or after January 1, 2017.

NUCLEAR INSURANCE

Edison requested and was granted approval in January 2018 by the NRC to reduce the nuclear liability and property damage insurance requirement. However, these changes in SONGS nuclear insurance levels require approval from all SONGS owners, as described below.

SDG&E and the other owners of SONGS have insurance to cover claims from nuclear liability incidents arising at SONGS. Currently, this insurance provides $450 million in coverage limits, the maximum amount available, including coverage for acts of terrorism. In addition, the Price-Anderson Act provides an additional $110 million of coverage. If a nuclear liability loss occurs at SONGS and exceeds the $450 million insurance limit, this additional coverage would be available to provide a total of $560 million in coverage limits per incident. The SFP is a program that provides additional insurance. If a nuclear liability loss occurs at any U.S. licensed/commercial reactor and exceeds the $450 million insurance limit, all SFP participants would be required to contribute to the SFP. Effective January 5, 2018, the NRC approved Edison’s request to reduce the nuclear liability insurance requirement from $450 million to $100 million and withdraw from participation in the SFP for SONGS. On April 5, 2018, the SONGS co-owners approved withdrawing from participation in the SFP for SONGS, but maintaining the nuclear liability insurance coverage at current levels ($450 million). Confirmation of SONGS’ withdrawal from the SFP has been received and became effective January 5, 2018.

The SONGS owners, including SDG&E, also maintain nuclear property damage insurance that exceeds the minimum federal requirements of $1.06 billion. This insurance coverage is provided through 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 $10.4 million of retrospective premiums based on overall member claims. All of SONGS’ insurance claims arising out of the failures of the MHI replacement steam generators have been settled with NEIL. Effective January 10, 2018, the NRC approved Edison’s request to reduce its minimum property damage insurance requirement for SONGS from $1.06 billion to $50 million. However, on April 5, 2018, the SONGS co-owners approved maintaining its current property damage insurance at $1.5 billion, but with a new $500 million property damage sublimit on the ISFSI.

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) of $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.

SEMPRA ENERGY - SHAREHOLDERS' EQUITY AND EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Schedule Of Earnings Per Share Computations



EARNINGS PER COMMON SHARE COMPUTATIONS
(Dollars in millions, except per share amounts; shares in thousands)
	Years ended December 31,
	2018		2017		2016
Numerator:
Earnings attributable to common shares	$	924	$	256	$	1,370

Denominator:
Weighted-average common shares outstanding for basic EPS⁽¹⁾	268,072		251,545		250,217
Dilutive effect of stock options, RSAs and RSUs⁽²⁾	919		755		938
Dilutive effect of common shares sold forward	861		—		—
Weighted-average common shares outstanding for diluted EPS	269,852		252,300		251,155

EPS:
Basic	$	3.45	$	1.02	$	5.48
Diluted	$	3.42	$	1.01	$	5.46


⁽¹⁾	Includes average fully vested RSUs held in our Deferred Compensation Plan of 641 in 2018, 609 in 2017 and 568 in 2016. These fully vested RSUs 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⁾

Due to market fluctuations of both Sempra Energy common stock and the comparative indices used to determine the vesting percentage of our total shareholder return performance-based RSUs, which we discuss in Note 10, dilutive RSUs may vary widely from period-to-period.

Schedule Of Common Stock Activity

The following table provides common stock activity for the last three years.



COMMON STOCK ACTIVITY

	Years ended December 31,
	2018		2017		2016
Common shares outstanding, January 1	251,358,977		250,152,514		248,298,080
Shares issued under forward sale agreements	21,175,473		—		—
RSUs vesting⁽¹⁾	509,042		362,022		1,363,555
Stock options exercised	138,861		164,454		167,742
Savings plan issuance	553,036		567,428		653,607
Common stock investment plan⁽²⁾	231,242		254,047		266,056
Issuance of RSUs held in our Deferred Compensation Plan	3,357		7,811		—
Shares repurchased⁽³⁾	(200,475	)	(149,299	)	(596,526	)
Common shares outstanding, December 31	273,769,513		251,358,977		250,152,514


⁽¹⁾	Includes dividend equivalents.


⁽²⁾	Participants in the Direct Stock Purchase Plan may reinvest dividends to purchase newly issued shares.

⁽³⁾

Generally, we purchase shares of our common stock or units from long-term incentive plan participants who elect to sell to us a sufficient number of vested RSAs or RSUs to meet minimum statutory tax withholding requirements.

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - FOREIGN CURRENCY TRANSLATION (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Foreign currency transaction losses	$ 5	$ 35	$ 1

SEMPRA ENERGY - SHAREHOLDERS' EQUITY AND EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

SEMPRA ENERGY - SHAREHOLDERS' EQUITY AND EARNINGS PER SHARE

SEMPRA ENERGY – SHAREHOLDERS’ EQUITY AND EARNINGS PER COMMMON SHARE

SEMPRA ENERGY COMMON STOCK OFFERINGS

On January 9, 2018, we completed the offering of 23,364,486 shares of our common stock, no par value, in a registered public offering at $107.00 per share (approximately $105.07 per share after deducting underwriting discounts), pursuant to forward sale agreements with each of Morgan Stanley & Co. LLC, an affiliate of RBC Capital Markets, LLC and an affiliate of Barclays Capital Inc. (the January 2018 forward purchasers). The shares offered pursuant to the forward sale agreements were borrowed by the underwriters and therefore are not newly issued shares. The underwriters of the offering fully exercised the option we granted

them to purchase an additional 3,504,672 shares of common stock directly from us solely to cover overallotments. After the offering, including the issuance of shares pursuant to the exercise of the overallotment option, the aggregate shares of common stock sold in the offering totaled 26,869,158. We received net proceeds of $367 million (net of underwriting discounts and equity issuance costs of $8 million) from the sale of shares to cover overallotments. We did not initially receive any proceeds from the sale of our common stock sold pursuant to the forward sale agreements.

In the first quarter of 2018, we settled approximately $900 million (net of underwriting discounts of $16 million) and in the second quarter of 2018, we settled approximately $800 million (net of underwriting discounts of $14 million) of forward sales under the forward sale agreements by delivering 8,556,630 shares and 7,651,671 shares, respectively, of newly issued Sempra Energy common stock at forward sale prices ranging from approximately $104.53 to approximately $105.18 per share.

We used the net proceeds from the sale of shares in the January 2018 offering and from the settlement of forward sales in the first quarter of 2018 under the forward sale agreements to fund a portion of the Merger Consideration, as we discuss in Note 5. We used the net proceeds from the settlement of forward sales in the second quarter of 2018 to repay long-term debt maturing in June 2018 and to repay commercial paper used to fund a portion of the Merger Consideration.

On July 13, 2018, we completed the offering of 9,750,000 shares of our common stock, no par value, in a registered public offering at $113.75 per share (approximately $111.87 per share after deducting underwriting discounts), pursuant to forward sale agreements with an affiliate of Citigroup Global Markets Inc. and an affiliate of J.P. Morgan Securities LLC (the July 2018 forward purchasers, together with the January 2018 forward purchasers, the forward purchasers). The shares offered pursuant to the forward sale agreements were borrowed by the underwriters and therefore are not newly issued shares. The underwriters of the offering fully exercised the option we granted them to purchase an additional 1,462,500 shares of common stock directly from us solely to cover overallotments. After the offering, including the issuance of shares pursuant to the exercise of the overallotment option, the aggregate shares of common stock sold in the offering totaled 11,212,500. We received net proceeds of $164 million (net of underwriting discounts and equity issuance costs of $3 million) from the sale of shares to cover overallotments. We did not initially receive any proceeds from the sale of our common stock sold pursuant to the forward sale agreements. We used the net proceeds from the sale of the overallotment shares to the underwriters, and we expect to use the net proceeds from the sale of shares of our common stock pursuant to the forward sale agreements, to repay commercial paper, to fund working capital and for other general corporate purposes.

As of February 26, 2019, a total of 16,906,185 shares of Sempra Energy common stock from our January 2018 and July 2018 offerings remain subject to future settlement under these forward sale agreements, which may be settled on one or more dates specified by us occurring no later than December 15, 2019, which is the final settlement date under the agreements. Although we expect to settle the forward sale agreements entirely by the physical delivery of shares of our common stock in exchange for cash proceeds, we may, subject to certain conditions, elect cash settlement or net share settlement for all or a portion of our obligations under the forward sale agreements. The forward sale agreements are also subject to acceleration by the forward purchasers upon the occurrence of certain events.

EARNINGS PER COMMON SHARE



EARNINGS PER COMMON SHARE COMPUTATIONS
(Dollars in millions, except per share amounts; shares in thousands)
	Years ended December 31,
	2018		2017		2016
Numerator:
Earnings attributable to common shares	$	924	$	256	$	1,370

Denominator:
Weighted-average common shares outstanding for basic EPS⁽¹⁾	268,072		251,545		250,217
Dilutive effect of stock options, RSAs and RSUs⁽²⁾	919		755		938
Dilutive effect of common shares sold forward	861		—		—
Weighted-average common shares outstanding for diluted EPS	269,852		252,300		251,155

EPS:
Basic	$	3.45	$	1.02	$	5.48
Diluted	$	3.42	$	1.01	$	5.46


⁽¹⁾	Includes average fully vested RSUs held in our Deferred Compensation Plan of 641 in 2018, 609 in 2017 and 568 in 2016. These fully vested RSUs 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⁾	Due to market fluctuations of both Sempra Energy common stock and the comparative indices used to determine the vesting percentage of our total shareholder return performance-based RSUs, which we discuss in Note 10, dilutive RSUs may vary widely from period-to-period.

The potentially dilutive impact from stock options, RSAs and 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 potentially dilutive shares of 20,814 for 2018, 237,741 for 2017 and zero for 2016 because to include them would be antidilutive for the period. However, these shares could potentially dilute basic EPS in the future.

The potentially dilutive impact from the forward sale of our common stock pursuant to the forward sale agreements that we discuss above is reflected in our diluted EPS calculation using the treasury stock method. We anticipate there will be a dilutive effect on our EPS when the average market price of our common stock shares is above the applicable adjusted forward sale price, subject to increase or decrease based on the overnight bank funding rate, less a spread, and subject to decrease by amounts related to expected dividends on shares of our common stock during the term of the forward sale agreements. Additionally, if we decide to physically settle or net share settle the forward sale agreements, delivery of our shares to the forward purchasers on any such physical settlement or net share settlement of the forward sale agreements would result in dilution to our EPS.

The potentially dilutive impact from mandatory convertible preferred stock that we issued in 2018 is calculated under the if-converted method. The computation of diluted EPS for the year ended December 31, 2018 excludes 17,197,035 potentially dilutive shares, because to include them would be antidilutive for the period. However, these shares could potentially dilute basic EPS in the future. We discuss the 2018 issuances of our mandatory convertible preferred stock in Note 13.

We are authorized to issue 750 million shares of no par value common stock. The following table provides common stock activity for the last three years.



COMMON STOCK ACTIVITY

	Years ended December 31,
	2018		2017		2016
Common shares outstanding, January 1	251,358,977		250,152,514		248,298,080
Shares issued under forward sale agreements	21,175,473		—		—
RSUs vesting⁽¹⁾	509,042		362,022		1,363,555
Stock options exercised	138,861		164,454		167,742
Savings plan issuance	553,036		567,428		653,607
Common stock investment plan⁽²⁾	231,242		254,047		266,056
Issuance of RSUs held in our Deferred Compensation Plan	3,357		7,811		—
Shares repurchased⁽³⁾	(200,475	)	(149,299	)	(596,526	)
Common shares outstanding, December 31	273,769,513		251,358,977		250,152,514


⁽¹⁾	Includes dividend equivalents.


⁽²⁾	Participants in the Direct Stock Purchase Plan may reinvest dividends to purchase newly issued shares.

⁽³⁾

SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT (Tables)

12 Months Ended

Dec. 31, 2018

Condensed Financial Information Disclosure [Abstract]

Schedule of Condensed Statements of Operations



SEMPRA ENERGY
CONDENSED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts)
	Years ended December 31,
	2018			2017⁽¹⁾			2016⁽¹⁾
Interest income	$	14		$	—		$	—
Interest expense	(495		)	(293		)	(277		)
Operating expenses	(82		)	(80		)	(76		)
Other (expense) income, net	(16		)	100			(7		)
Income tax benefit	154			33			181
Loss before equity in earnings of subsidiaries	(425		)	(240		)	(179		)
Equity in earnings of subsidiaries, net of income taxes	1,474			496			1,549
Net income	1,049			256			1,370
Mandatory convertible preferred stock dividends	(125		)	—			—
Earnings	$	924		$	256		$	1,370
Basic earnings per common share	$	3.45		$	1.02		$	5.48
Weighted-average shares outstanding, basic (thousands)	268,072			251,545			250,217
Diluted earnings per common share	$	3.42		$	1.01		$	5.46
Weighted-average shares outstanding, diluted (thousands)	269,852			252,300			251,155


⁽¹⁾	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2.

See Notes to Condensed Financial Information of Parent.

Schedule Of Condensed Statements Of Comprehensive Income



SEMPRA ENERGY
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
	Years ended December 31, 2018, 2017 and 2016
	Pretax amount			Income tax benefit (expense)			Net-of-tax amount
2018:
Net income	$	895		$	154		$	1,049
Other comprehensive income (loss):
Foreign currency translation adjustments	(144		)	—			(144		)
Financial instruments	64			(21		)	43
Pension and other postretirement benefits	(38		)	4			(34		)
Total other comprehensive loss	(118		)	(17		)	(135		)
Comprehensive income	$	777		$	137		$	914
2017:
Net income	$	223		$	33		$	256
Other comprehensive income (loss):
Foreign currency translation adjustments	107			—			107
Financial instruments	2			1			3
Pension and other postretirement benefits	20			(8		)	12
Total other comprehensive income	129			(7		)	122
Comprehensive income	$	352		$	26		$	378
2016:
Net income	$	1,189		$	181		$	1,370
Other comprehensive income (loss):
Foreign currency translation adjustments	42			—			42
Financial instruments	(6		)	11			5
Pension and other postretirement benefits	(13		)	4			(9		)
Total other comprehensive income	23			15			38
Comprehensive income	$	1,212		$	196		$	1,408

See Notes to Condensed Financial Information of Parent.

Schedule Of Condensed Balance Sheets



SEMPRA ENERGY
CONDENSED BALANCE SHEETS
(Dollars in millions)
	December 31, 2018		December 31, 2017
Assets:
Cash and cash equivalents	$	14	$	104
Due from affiliates	93		83
Income taxes receivable	397		272
Other current assets	9		6
Total current assets	513		465

Investments in subsidiaries	28,778		17,924
Due from affiliates	3		2
Deferred income taxes	1,554		1,802
Other assets	572		656
Total assets	$	31,420	$	20,849

Liabilities and shareholders’ equity:
Current portion of long-term debt	$	1,498	$	500
Due to affiliates	287		280
Other current liabilities	527		396
Total current liabilities	2,312		1,176

Long-term debt	9,647		6,198
Due to affiliates	1,812		300
Other long-term liabilities	511		505

Commitments and contingencies (Note 4)

Shareholders’ equity	17,138		12,670
Total liabilities and shareholders’ equity	$	31,420	$	20,849

See Notes to Condensed Financial Information of Parent.

Schedule of Condensed Statements of Cash Flows



SEMPRA ENERGY
CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in millions)
	Years ended December 31,
	2018			2017			2016

Net cash provided by (used in) operating activities	$	213		$	89		$	(3	)

Expenditures for property, plant and equipment	(11		)	(11		)	(5		)
Expenditures for acquisition	(329		)	—			—
Capital contributions to investees	(9,457		)	—			—
(Increase) decrease in loans to affiliates, net	(1		)	—			457
Expenditures for Merger-related costs	—			(12		)	—
Net cash (used in) provided by investing activities	(9,798		)	(23		)	452

Common stock dividends paid	(877		)	(755		)	(686		)
Preferred dividends paid	(89		)	—			—
Issuances of mandatory convertible preferred stock, net of $42 in offering costs in 2018	2,258			—			—
Issuances of common stock, net of $41 in offering costs in 2018	2,272			47			51
Repurchases of common stock	(21		)	(15		)	(56		)
Issuances of long-term debt	4,969			1,595			499
Payments on long-term debt	(500		)	(600		)	(750		)
Increase (decrease) in loans from affiliates, net	1,520			(239		)	504
Debt issuance costs	(37		)	(7		)	(3		)
Net cash provided by (used in) financing activities	9,495			26			(441		)

(Decrease) increase in cash and cash equivalents	(90		)	92			8
Cash and cash equivalents, January 1	104			12			4
Cash and cash equivalents, December 31	$	14		$	104		$	12

SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Accrued Merger-related transaction costs	$	—		$	31		$	—
Preferred dividends declared but not paid	36			—			—
Common dividends issued in stock	54			53			53
Common dividends declared but not paid	245			207			189

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Upon adoption of ASU 2017-07, our Consolidated Statements of Operations were impacted as follows:



IMPACT FROM ADOPTION OF ASU 2017-07
(Dollars in millions)
	Years ended December 31,
	2017							2016
	As previously reported		Effect of adoption			As adjusted		As previously reported		Effect of adoption			As adjusted
Sempra Energy:
Operation and maintenance	$	3,117	$	(21	)	$	3,096	$	2,970	$	6		$	2,976
Other income, net	254		(21		)	233		132		6			138
SDG&E:
Operation and maintenance	$	1,020	$	4		$	1,024	$	1,048	$	14		$	1,062
Total operating expenses	3,763		4			3,767		3,263		14			3,277
Operating income	713		(4		)	709		990		(14		)	976
Other income, net	66		4			70		50		14			64
SoCalGas:
Operation and maintenance	$	1,479	$	(5	)	$	1,474	$	1,385	$	6		$	1,391
Total operating expenses	3,163		(5		)	3,158		2,914		6			2,920
Operating income	622		5			627		557		(6		)	551
Other income, net	36		(5		)	31		32		6			38

The following table shows the expected (decrease) increase on our balance sheets at January 1, 2019 from adoption of the lease standard.



EXPECTED IMPACT FROM ADOPTION OF THE LEASE STANDARD
(Dollars in millions)
	Sempra Energy Consolidated			SDG&E		SoCalGas
Other current assets	$	(68	)	$	—	$	—
Property, plant and equipment, net	(147		)	—		—
Right-of-use assets – operating leases	623			130		116
Deferred income taxes	(3		)	—		—
Other current liabilities	81			20		23
Long-term debt	(138		)	—		—
Deferred credits and other	445			110		93
Retained earnings	17			—		—

The following table shows the expected increase (decrease) from adoption of the lease standard on our balance sheet at January 1, 2019.



EXPECTED IMPACT FROM ADOPTION OF THE LEASE STANDARD
(Dollars in millions)
Right-of-use assets – operating leases	$	191
Deferred income taxes	(3		)
Property, plant and equipment, net⁽¹⁾	(147		)
Other current liabilities	3
Long-term debt	(138		)
Other long-term liabilities	159
Retained earnings⁽²⁾	17


⁽¹⁾	Included in Other Assets.


⁽²⁾	Included in Shareholders’ Equity.

Upon adoption of ASU 2017-07, our Condensed Statements of Operations were impacted as follows:



IMPACT FROM ADOPTION OF ASU 2017-07
(Dollars in millions)
	Years ended December 31,
	2017									2016
	As previously reported			Effect of adoption			As adjusted			As previously reported			Effect of adoption			As adjusted
Sempra Energy:
Operation and maintenance	$	(87	)	$	7		$	(80	)	$	(81	)	$	5		$	(76	)
Other income (expense), net	107			(7		)	100			(2		)	(5		)	(7		)

Schedule Of Long-term Debt

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



LONG-TERM DEBT
(Dollars in millions)
	December 31,
	2018			2017
SDG&E
First mortgage bonds (collateralized by plant assets):
1.65% July 1, 2018⁽¹⁾	$	—		$	161
3% August 15, 2021	350			350
1.914% payable 2015 through February 2022	125			161
3.6% September 1, 2023	450			450
2.5% May 15, 2026	500			500
6% June 1, 2026	250			250
5.875% January and February 2034⁽¹⁾	176			176
5.35% May 15, 2035	250			250
6.125% September 15, 2037	250			250
4% May 1, 2039⁽¹⁾	75			75
6% June 1, 2039	300			300
5.35% May 15, 2040	250			250
4.5% August 15, 2040	500			500
3.95% November 15, 2041	250			250
4.3% April 1, 2042	250			250
3.75% June 1, 2047	400			400
4.15% May 15, 2048	400			—
	4,776			4,573
Other long-term debt:
OMEC LLC variable-rate loan (5.2925% after floating-to-fixed rate swaps effective 2007),
payable 2013 through April 2019 (collateralized by OMEC plant assets)	—			295
OMEC LLC variable-rate loan (4.7896% at December 31, 2018 except for $142 at 5.2925%
after floating-to-fixed rate swaps through April 1, 2019), payable 2019 through 2024
(collateralized by OMEC plant assets)	220			—

Capital lease obligations:
Purchased-power contracts	1,270			731
Other	2			1
	1,492			1,027
	6,268			5,600
Current portion of long-term debt	(81		)	(220		)
Unamortized discount on long-term debt	(12		)	(11		)
Unamortized debt issuance costs	(37		)	(34		)
Total SDG&E	6,138			5,335

SoCalGas
First mortgage bonds (collateralized by plant assets):
5.45% April 15, 2018	—			250
1.55% June 15, 2018	—			250
3.15% September 15, 2024	500			500
3.2% June 15, 2025	350			350
2.6% June 15, 2026	500			500
5.75% November 15, 2035	250			250
5.125% November 15, 2040	300			300
3.75% September 15, 2042	350			350
4.45% March 15, 2044	250			250
4.125% June 1, 2048	400			—
4.3% January 15, 2049	550			—
	3,450			3,000
Other long-term debt (uncollateralized):
1.875% Notes payable 2016 through May 2026⁽¹⁾	4			4
5.67% Notes January 18, 2028	5			5
Capital lease obligations	3			1
	12			10
	3,462			3,010
Current portion of long-term debt	(3		)	(501		)
Unamortized discount on long-term debt	(6		)	(7		)
Unamortized debt issuance costs	(26		)	(17		)
Total SoCalGas	3,427			2,485



LONG-TERM DEBT (CONTINUED)
(Dollars in millions)
	December 31,
	2018			2017
Sempra Energy
Other long-term debt (uncollateralized):
6.15% Notes June 15, 2018	—			500
9.8% Notes February 15, 2019	500			500
Notes at variable rates (2.69% at December 31, 2018) July 15, 2019	500			—
1.625% Notes October 7, 2019	500			500
2.4% Notes February 1, 2020	500			—
2.4% Notes March 15, 2020	500			500
2.85% Notes November 15, 2020	400			400
Notes at variable rates (2.94% at December 31, 2018) January 15, 2021⁽¹⁾	700			—
Notes at variable rates (3.24% at December 31, 2018) March 15, 2021	850			850
2.875% Notes October 1, 2022	500			500
2.9% Notes February 1, 2023	500			—
4.05% Notes December 1, 2023	500			500
3.55% Notes June 15, 2024	500			500
3.75% Notes November 15, 2025	350			350
3.25% Notes June 15, 2027	750			750
3.4% Notes February 1, 2028	1,000			—
3.8% Notes February 1, 2038	1,000			—
6% Notes October 15, 2039	750			750
4% Notes February 1, 2048	800			—
Fair value adjustments for interest rate swaps, net	—			(1		)
Build-to-suit lease⁽²⁾	138			138
Sempra South American Utilities
Other long-term debt (uncollateralized):
Chilquinta Energía – 4.25% Series B Bonds October 30, 2030	186			205
Luz del Sur
Bank loans 4.3% to 5.7% payable 2017 through December 2021	105			53
Corporate bonds at 4.75% to 8.75% payable 2014 through September 2029	432			415
Other bonds at 3.77% to 4.61% payable 2020 through May 2022	4			6
Capital lease obligations	6			6
Sempra Mexico
Other long-term debt (uncollateralized unless otherwise noted):
Notes February 8, 2018 at variable rates (2.66% after floating-to-fixed rate cross-currency
swaps effective 2013)	—			66
6.3% Notes February 2, 2023 (4.12% after cross-currency swap)	198			198
Notes at variable rates (4.88% after floating-to-fixed rate swaps effective 2014),
payable 2016 through December 2026, collateralized by plant assets	275			314
3.75% Notes January 14, 2028	300			300
Bank loans including $246 at a weighted-average fixed rate of 6.67%, $164 at variable rates
(weighted-average rate of 6.33% after floating-to-fixed rate swaps effective 2014) and $37 at variable
rates (5.82% at December 31, 2018), payable 2016 through March 2032, collateralized by plant assets	447			468
4.875% Notes January 14, 2048	540			540
Loan at variables rates (6.07% at December 31, 2018) July 31, 2028	4			—
Sempra Renewables
Other long-term debt (collateralized by project assets):
Loan at variable rates (3.325% at December 31, 2017) payable 2012 through December 2028
except for $59 at 3.668% after floating-to-fixed rate swaps effective June 2012⁽¹⁾	—			77
Sempra LNG & Midstream
Other long-term debt (uncollateralized):
Notes at 2.87% to 3.51% October 1, 2026⁽¹⁾	21			20
	13,756			9,405
Current portion of long-term debt	(1,589		)	(706		)
Unamortized discount on long-term debt	(38		)	(13		)
Unamortized premium on long-term debt	4			4
Unamortized debt issuance costs	(87		)	(65		)
Total other Sempra Energy	12,046			8,625
Total Sempra Energy Consolidated	$	21,611		$	16,445


⁽¹⁾	Callable long-term debt not subject to make-whole provisions.

⁽²⁾

We discuss this lease in Notes 2 and 16.Sempra Energy

On January 12, 2018, we issued the following debt securities and received net proceeds of $4.9 billion (after deducting discounts and debt issuance costs of $68 million):



NOTES ISSUED IN LONG-TERM DEBT OFFERING
(Dollars in millions)
Title of each class of securities	Aggregate principal amount		Maturity	Interest payments
Notes at variable rates⁽¹⁾ due 2019	$	500	July 15, 2019	Quarterly
Notes at variable rates⁽²⁾ due 2021	700		January 15, 2021	Quarterly
2.4% Notes due 2020	500		February 1, 2020	Semi-annually
2.9% Notes due 2023	500		February 1, 2023	Semi-annually
3.4% Notes due 2028	1,000		February 1, 2028	Semi-annually
3.8% Notes due 2038	1,000		February 1, 2038	Semi-annually
4% Notes due 2048	800		February 1, 2048	Semi-annually


⁽¹⁾	Bears interest at a rate per annum equal to the 3-month LIBOR rate, plus 25 bps.

⁽²⁾

Bears interest at a rate per annum equal to the 3-month LIBOR rate, plus 50 bps.The following table shows the detail and maturities of long-term debt outstanding:



LONG-TERM DEBT
(Dollars in millions)
	December 31,
	2018			2017

6.15% Notes June 15, 2018	$	—		$	500
9.8% Notes February 15, 2019	500			500
Notes at variable rates (2.69% at December 31, 2018) July 15, 2019	500			—
1.625% Notes October 7, 2019	500			500
2.4% Notes February 1, 2020	500			—
2.4% Notes March 15, 2020	500			500
2.85% Notes November 15, 2020	400			400
Notes at variable rates (2.94% at December 31, 2018) January 15, 2021⁽¹⁾	700			—
Notes at variable rates (3.24% at December 31, 2018) March 15, 2021	850			850
2.875% Notes October 1, 2022	500			500
2.9% Notes February 1, 2023	500			—
4.05% Notes December 1, 2023	500			500
3.55% Notes June 15, 2024	500			500
3.75% Notes November 15, 2025	350			350
3.25% Notes June 15, 2027	750			750
3.4% Notes February 1, 2028	1,000			—
3.8% Notes February 1, 2038	1,000			—
6% Notes October 15, 2039	750			750
4% Notes February 1, 2048	800			—
Fair value adjustments for interest rate swaps, net	—			(1		)
Build-to-suit lease	138			138
	11,238			6,737
Current portion of long-term debt	(1,498		)	(500		)
Unamortized discount on long-term debt	(38		)	(13		)
Unamortized debt issuance costs	(55		)	(26		)
Total long-term debt	$	9,647		$	6,198

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - INVENTORIES (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Inventory [Line Items]
Natural gas	$ 95	$ 109
LNG	4	11
Materials and supplies	197	187
Inventories	296	307
SDG&E [Member]
Inventory [Line Items]
Natural gas	0	4
LNG	0	0
Materials and supplies	102	101
Inventories	102	105
SoCalGas [Member]
Inventory [Line Items]
Natural gas	92	75
LNG	0	0
Materials and supplies	42	49
Inventories	134	124
Sempra South American Utilities [Member]
Inventory [Line Items]
Natural gas	0	0
LNG	0	0
Materials and supplies	38	30
Inventories	38	30
Sempra Mexico [Member]
Inventory [Line Items]
Natural gas	0	0
LNG	4	7
Materials and supplies	15	2
Inventories	19	9
Sempra Renewables [Member]
Inventory [Line Items]
Natural gas	0	0
LNG	0	0
Materials and supplies	0	5
Inventories	0	5
Sempra LNG & Midstream [Member]
Inventory [Line Items]
Natural gas	3	30
LNG	0	4
Materials and supplies	0	0
Inventories	$ 3	$ 34

COMMITMENTS AND CONTINGENCIES - LOSS ON CONTINGENCIES (Details)
£ in Millions

1 Months Ended

2 Months Ended

3 Months Ended

12 Months Ended

Feb. 21, 2019

plaintiff

lawsuit

Oct. 31, 2018

plaintiff

Aug. 31, 2018

USD ($)

Sep. 30, 2017

USD ($)

Jan. 31, 2017

lawsuit

Sep. 30, 2016

USD ($)

Oct. 31, 2017

lawsuit

Sep. 30, 2018

USD ($)

lawsuit

Dec. 31, 2018

USD ($)

Bcf

proof_of_claim

Dec. 31, 2018

GBP (£)

Bcf

Dec. 31, 2017

USD ($)

Dec. 31, 2016

USD ($)

^[1]

Oct. 21, 2016

Oct. 01, 2014

USD ($)

Oct. 01, 2014

GBP (£)

Loss Contingencies [Line Items]

Loss contingency accrual

$ 200,000,000

Write-off of wildfire regulatory asset

$ 351,000,000

^[1]

$ 0

Reserve for Aliso Canyon costs

160,000,000

84,000,000

San Diego Gas and Electric Company [Member]

Loss Contingencies [Line Items]

Loss contingency accrual

2,000,000

Write-off of wildfire regulatory asset

351,000,000

^[1]

$ 0

Southern California Gas Company [Member]

Loss Contingencies [Line Items]

Loss contingency accrual

147,000,000

Recoverable costs through insurance settlement

1,027,000,000

Reserve for Aliso Canyon costs

$ 160,000,000

84,000,000

Energy Future Holdings Corp. [Member]

Loss Contingencies [Line Items]

Proof of claims | proof_of_claim

28,000

Loss from Catastrophes, 2007 Wildfire [Member] | San Diego Gas and Electric Company [Member]

Loss Contingencies [Line Items]

Write-off of wildfire regulatory asset

$ 351,000,000

351,000,000

Write-off of wildfire regulatory asset net of tax

$ 208,000,000

Aliso Canyon Natural Gas Storage Facility Gas Leak [Member]

Loss Contingencies [Line Items]

Loss contingency accrual

$ 136,000,000

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

Loss Contingencies [Line Items]

Amount of natural gas released | Bcf

4.62

Mitigation requirement | t

109,000

Recorded estimated costs

$ 1,055,000,000

Perecentage of recorded estimated costs allocated to temporary relocation program

54.00%

Reserve for Aliso Canyon costs

$ 160,000,000

Insurance receivable for Aliso Canyon costs

461,000,000

Proceeds from insurance settlement

$ 566,000,000

Storage facility maximum capacity | Bcf

Aliso Canyon facility as a percentage of SoCalGas total storage capacity

63.00%

Storage Facility, Working Gas Target | Bcf

Net book value Of Aliso Canyon Natural Gas Storage Facility

$ 724,000,000

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

Loss Contingencies [Line Items]

Maximum occupational safety And health fines

$ 75,000

Penalty assessments

233,500

Maximum other assessments in settlement of criminal complaint

$ 6,000,000

HMRC VAT Claim [Member] | R B S Sempra Commodities [Member]

Loss Contingencies [Line Items]

VAT tax claim paid upon appeal

$ 138,000,000

HMRC VAT Claim [Member] | Plaintiffs [Member]

Loss Contingencies [Line Items]

Damages sought

91,000,000

£ 71.5

HMRC VAT Claim [Member] | Parent Company [Member]

Loss Contingencies [Line Items]

VAT tax claim paid upon appeal | £

£ 86.0

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

Loss Contingencies [Line Items]

Liability insurance coverage

1,200,000,000

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

Loss Contingencies [Line Items]

Liability insurance coverage

$ 1,400,000,000

Consolidated Class Action Complaints [Member]

Loss Contingencies [Line Items]

Number of lawsuits | lawsuit

Property Class Action [Member]

Loss Contingencies [Line Items]

Number of lawsuits | lawsuit

Complaints Filed by Firefighters [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | Southern California Gas Company [Member]

Loss Contingencies [Line Items]

Number of plaintiffs | plaintiff

Complaints Filed by Public Entities [Member]

Loss Contingencies [Line Items]

Number of lawsuits | lawsuit

R B S Sempra Commodities [Member]

Loss Contingencies [Line Items]

Investment in RBS Sempra Commodities LLP

$ 65,000,000

Funding for Environmental Projects [Member] | Complaints Filed by Public Entities [Member] | Southern California Gas Company [Member]

Loss Contingencies [Line Items]

Settlement amount payable

$ 120,000,000

Civil Penalties [Member] | Complaints Filed by Public Entities [Member] | Southern California Gas Company [Member]

Loss Contingencies [Line Items]

Settlement amount payable

$ 21,000,000

Subsequent Event [Member] | Energy Future Holdings Corp. [Member]

Loss Contingencies [Line Items]

Number of lawsuits | lawsuit

1,685

Loss Contingency, Pending Claims, Number | lawsuit

119

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

Loss Contingencies [Line Items]

Number of lawsuits | lawsuit

393

Number of plaintiffs | plaintiff

48,000

[1]	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1.

INVESTMENTS IN UNCONSOLIDATED ENTITIES - GUARANTEES (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Long-term Purchase Commitment [Line Items]
Current guarantor obligations	$ 9
Debt Service Operations [Member]
Long-term Purchase Commitment [Line Items]
Maximum exposure of guarantor obligations	152
Current guarantor obligations	5
Purchased Power Contracts [Member]
Long-term Purchase Commitment [Line Items]
Maximum exposure of guarantor obligations	79
Current guarantor obligations	$ 1
IEnova [Member] \| Sempra Mexico [Member]
Long-term Purchase Commitment [Line Items]
Ownership percentage held by noncontrolling owners	33.50%	33.60%
Corporate Joint Venture [Member] \| IMG [Member] \| IEnova [Member] \| Sempra Mexico [Member]
Long-term Purchase Commitment [Line Items]
Ownership percentage held by noncontrolling owners	40.00%
TransCanada [Member] \| Corporate Joint Venture [Member] \| IMG [Member] \| IEnova [Member] \| Sempra Mexico [Member]
Long-term Purchase Commitment [Line Items]
Ownership percentage held by noncontrolling owners	60.00%

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - PROPERTY, PLANT, AND EQUIPMENT (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 49,315	$ 48,108
Depreciation	1,528	1,422	$ 1,236
Accumulated depreciation	12,519	11,605
San Diego Gas and Electric Company [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	21,662	19,787
Depreciation	686	621	583
Accumulated depreciation	5,352	4,949
Southern California Gas Company [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	18,138	16,772
Depreciation	553	514	$ 474
Accumulated depreciation	5,699	5,366
Electricity [Member] \| San Diego Gas and Electric Company [Member]
Property, Plant and Equipment [Line Items]
Accumulated depreciation	4,558	4,193
Accumulated depreciation of capital leased assets	48	47
Natural gas operations [Member] \| San Diego Gas and Electric Company [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 2,382	$ 2,186
Depreciation rates (percentage)	2.44%	2.40%	2.40%
Accumulated depreciation	$ 794	$ 756
Natural gas operations [Member] \| Southern California Gas Company [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 17,268	$ 15,759
Depreciation rates (percentage)	3.60%	3.63%	3.64%
Capital leased assets	$ 40	$ 34
Accumulated depreciation	5,685	5,352
Accumulated depreciation of capital leased assets	37	33
Electric distribution [Member] \| San Diego Gas and Electric Company [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 7,462	$ 6,975
Depreciation rates (percentage)	3.91%	3.92%	3.86%
Electric transmission [Member] \| San Diego Gas and Electric Company [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 6,222	$ 5,626
Depreciation rates (percentage)	2.76%	2.71%	2.66%
Electric generation [Member] \| San Diego Gas and Electric Company [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 2,967	$ 2,435
Depreciation rates (percentage)	4.12%	4.05%	4.00%
Capital leased assets	$ 1,300	$ 757
Other electric [Member] \| San Diego Gas and Electric Company [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 1,408	$ 1,114
Depreciation rates (percentage)	6.43%	5.54%	5.66%
Capital leased assets	$ 13	$ 22
Other non-utility [Member] \| Southern California Gas Company [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 34	$ 32
Depreciation rates (percentage)	5.39%	5.28%	6.55%
Accumulated depreciation	$ 14	$ 14
Other non-utility [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Accumulated depreciation	1,125	972
Construction work in progress [Member] \| San Diego Gas and Electric Company [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	1,221	1,451
Construction work in progress [Member] \| Southern California Gas Company [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	836	981
Land and land rights [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 429	416
Land and land rights [Member] \| Minimum [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	16 years
Land and land rights [Member] \| Maximum [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	50 years
Land and land rights [Member] \| Weighted Average [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	30 years
Utility electric distribution operations [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 1,977	1,751
Accumulated depreciation	$ 343	318
Utility electric distribution operations [Member] \| Minimum [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years
Utility electric distribution operations [Member] \| Maximum [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	45 years
Utility electric distribution operations [Member] \| Weighted Average [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	41 years
Generating plants [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 1,051	2,242
Generating plants [Member] \| Minimum [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Generating plants [Member] \| Maximum [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	100 years
Generating plants [Member] \| Weighted Average [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	30 years
LNG terminals [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 1,134	1,133
LNG terminals [Member] \| Minimum [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	43 years
LNG terminals [Member] \| Maximum [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	43 years
LNG terminals [Member] \| Weighted Average [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	43 years
Pipelines and storage [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 3,413	4,408
Pipelines and storage [Member] \| Minimum [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Pipelines and storage [Member] \| Maximum [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	50 years
Pipelines and storage [Member] \| Weighted Average [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	41 years
Other [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 205	269
Other [Member] \| Minimum [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	1 year
Other [Member] \| Maximum [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	50 years
Other [Member] \| Weighted Average [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	7 years
Construction work in progress [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 684	691
Other [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	622	639
Capital leased assets	136	136
Leasehold Improvements, Gross	24	24
Accumulated depreciation of capital leased assets	$ 10	7
Other [Member] \| Minimum [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Other [Member] \| Maximum [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	80 years
Other [Member] \| Weighted Average [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	31 years
Leasehold Improvements [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Accumulated depreciation	$ 3	2
Plant, pipeline and other distribution assets of ecogas [Member]
Property, Plant and Equipment [Line Items]
Accumulated depreciation	43	39
Plant, pipeline and other distribution assets of ecogas [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	154	145
Total Other Operating Units And Parent [Member] \| Other Operating Units and Parent [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	9,515	11,549
Accumulated depreciation	1,468	$ 1,290
Southwest Powerlink (SWPL) transmission line [Member] \| Electric transmission [Member] \| San Diego Gas and Electric Company [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 457
Ownership interest	92.00%
Accumulated depreciation	$ 252
Southwest Powerlink (SWPL) transmission line [Member] \| Construction work in progress [Member] \| San Diego Gas and Electric Company [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 26

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule Of Estimated Future Payments Under Natural Gas Contracts

At December 31, 2018, the future estimated payments under existing natural gas contracts and natural gas storage and transportation contracts are as follows:



FUTURE ESTIMATED PAYMENTS – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Storage and transportation		Natural gas⁽¹⁾		Total⁽¹⁾
2019	$	230	$	33	$	263
2020	158		15		173
2021	144		12		156
2022	73		12		85
2023	50		13		63
Thereafter	262		18		280
Total estimated payments	$	917	$	103	$	1,020


⁽¹⁾	Excludes amounts related to the LNG purchase agreement discussed below.



FUTURE ESTIMATED PAYMENTS – SOCALGAS
(Dollars in millions)
	Transportation		Natural gas		Total
2019	$	114	$	12	$	126
2020	118		4		122
2021	104		—		104
2022	37		—		37
2023	23		1		24
Thereafter	49		—		49
Total estimated payments	$	445	$	17	$	462

Schedule Of Payments Under Natural Gas Contracts

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



PAYMENTS UNDER NATURAL GAS CONTRACTS
(Dollars in millions)
	Years ended December 31,
	2018		2017		2016
Sempra Energy Consolidated	$	1,345	$	1,429	$	1,169
SoCalGas	1,169		1,213		966

Schedule Of L N G Commitment Amounts

At December 31, 2018, the following LNG commitment amounts are based on the assumption that all cargoes, less those already confirmed to be diverted, under the agreement are delivered:



LNG COMMITMENT AMOUNTS
(Dollars in millions)
2019	$	289
2020	372
2021	368
2022	373
2023	385
Thereafter	2,475
Total	$	4,262

Schedule Of Estimated Future Payments Under Purchased Power Contracts

At December 31, 2018, the future estimated payments under long-term purchased-power contracts are as follows:



FUTURE ESTIMATED PAYMENTS – PURCHASED-POWER CONTRACTS
(Dollars in millions)
	Sempra Energy Consolidated		SDG&E
2019	$	654	$	527
2020	629		510
2021	631		510
2022	592		496
2023	549		451
Thereafter	5,185		5,026
Total estimated payments⁽¹⁾⁽²⁾	$	8,240	$	7,520


⁽¹⁾	Excludes purchase agreements accounted for as capital leases and amounts related to Otay Mesa VIE, as it is consolidated by Sempra Energy and SDG&E.


⁽²⁾	Includes $5.2 billion of expected payments under purchase agreements accounted for as operating leases at SDG&E, comprised of renewable energy PPAs for which there are no future minimum operating lease payments.

Schedule Of Payments Under Purchased Power Contracts

Total payments under purchased-power contracts were as follows:



PAYMENTS UNDER PURCHASED-POWER CONTRACTS
(Dollars in millions)
	Years ended December 31,
	2018		2017		2016
Sempra Energy Consolidated	$	1,582	$	1,694	$	1,667
SDG&E	712		781		752

Schedule Of Operating Leases Rent Expense

Rent expense for operating leases was as follows:



RENT EXPENSE – OPERATING LEASES
(Dollars in millions)
	Years ended December 31,
	2018		2017		2016
Sempra Energy Consolidated	$	123	$	109	$	77
SDG&E	27		28		28
SoCalGas	41		43		38

Schedule Of Operating Leases Future Minimum Payments Due

At December 31, 2018, the rental commitments payable in future years under all noncancelable operating leases, including estimated payments, are as follows:



FUTURE RENTAL PAYMENTS – OPERATING LEASES
(Dollars in millions)
	2019		2020		2021		2022		2023		Thereafter		Total
Sempra Energy Consolidated:
Future minimum lease payments	$	79	$	56	$	54	$	51	$	44	$	259	$	543
Future estimated rental payments	12		12		13		13		13		44		107
Total future rental commitments	$	91	$	68	$	67	$	64	$	57	$	303	$	650
SDG&E:
Future minimum lease payments	$	23	$	22	$	22	$	21	$	17	$	48	$	153
Future estimated rental payments	2		2		2		2		2		7		17
Total future rental commitments	$	25	$	24	$	24	$	23	$	19	$	55	$	170
SoCalGas:
Future minimum lease payments	$	26	$	22	$	21	$	20	$	16	$	28	$	133
Future estimated rental payments	10		10		11		11		11		37		90
Total future rental commitments	$	36	$	32	$	32	$	31	$	27	$	65	$	223

Schedule Of Capital Leases Future Minimum Payments Present Value Of Net Minimum Payments

At December 31, 2018, the future minimum lease payments and present value of the net minimum lease payments under these capital leases for both Sempra Energy Consolidated and SDG&E are as follows:



FUTURE MINIMUM PAYMENTS – POWER PURCHASE AGREEMENTS
(Dollars in millions)
2019	$	210
2020	210
2021	211
2022	211
2023	211
Thereafter	3,196
Total minimum lease payments⁽¹⁾	4,249
Less: estimated executory costs	(480		)
Less: interest⁽²⁾	(2,483		)
Present value of net minimum lease payments⁽³⁾	$	1,286

⁽¹⁾

This expense receives ratemaking treatment consistent with purchased-power costs, which are recovered in rates and have been recorded over the lives of the leases as Cost of Electric Fuel and Purchased Power on Sempra Energy’s and SDG&E’s Consolidated Statements of Operations. See discussion in Note 2 regarding the classification of this expense after adoption of the new lease standard in 2019.


⁽²⁾	Amount necessary to reduce net minimum lease payments to present value at the inception of the leases.


⁽³⁾	Includes $15 million in Current Portion of Long-Term Debt and $1,255 million in Long-Term Debt on Sempra Energy’s and SDG&E’s Consolidated Balance Sheets at December 31, 2018. The remaining present value of net minimum lease payments of $16 million will be recorded as finance leases when construction of the battery storage facilities is completed and delivery of contracted power commences.

Schedule Of Environmental Remediation Costs Capitalized In Period

The following table shows our capital expenditures (including construction work in progress) in order to comply with environmental laws and regulations:



CAPITAL EXPENDITURES FOR ENVIRONMENTAL ISSUES
(Dollars in millions)
	Years ended December 31,
	2018		2017		2016
Sempra Energy Consolidated⁽¹⁾	$	101	$	92	$	53
SDG&E	38		46		17
SoCalGas	62		45		35

⁽¹⁾

In cases of non-wholly owned affiliates, includes only our share.

Schedule Of Environmental Remediation Costs, Status Of Remediation Sites

The table below shows the status at December 31, 2018 of the California Utilities’ manufactured-gas sites and the third-party waste-disposal sites for which we have been identified as a PRP:



STATUS OF ENVIRONMENTAL SITES

	# Sites complete⁽¹⁾	# Sites in process
SDG&E:
Manufactured-gas sites	3	—
Third-party waste-disposal sites	2	1
SoCalGas:
Manufactured-gas sites	39	3
Third-party waste-disposal sites	5	2

⁽¹⁾

There may be ongoing compliance obligations for completed sites, such as regular inspections, adherence to land use covenants and water quality monitoring.

Schedule of Environmental Loss Contingencies by Site

The following table shows our accrued liabilities for environmental matters at December 31, 2018:



ACCRUED LIABILITIES FOR ENVIRONMENTAL MATTERS
(Dollars in millions)
	Manufactured- gas sites		Waste disposal sites (PRP)⁽¹⁾		Other hazardous waste sites		Total⁽²⁾
SDG&E⁽³⁾	$	—	$	2	$	3	$	5
SoCalGas⁽⁴⁾	30		1		—		31
Other	—		1		—		1
Total Sempra Energy	$	30	$	4	$	3	$	37


⁽¹⁾	Sites for which we have been identified as a PRP.


⁽²⁾	Includes $10 million, $1 million and $9 million classified as current liabilities, and $27 million, $4 million and $22 million classified as noncurrent liabilities on Sempra Energy’s, SDG&E’s and SoCalGas’ Consolidated Balance Sheets, respectively.


⁽³⁾	Does not include SDG&E’s liability for SONGS marine environment mitigation.


⁽⁴⁾	Does not include SoCalGas’ liability for environmental matters for the Leak at the Aliso Canyon natural gas storage facility. We discuss matters related to the Leak above in “Legal Proceedings – SoCalGas – Aliso Canyon Natural Gas Storage Facility Gas Leak.”

Schedule Of Build To Suit Lease Future Minimum Payments Due

At December 31, 2018, the future minimum lease payments on the lease are as follows:



FUTURE MINIMUM PAYMENTS – BUILD-TO-SUIT LEASE
(Dollars in millions)
2019	$	10
2020	11
2021	11
2022	11
2023	11
Thereafter	217
Total minimum lease payments	$	271

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
AOCI, beginning balance	$ 12,670
Amounts reclassified from AOCI(2)	21	$ 19	$ 18
Cumulative-effect adjustment from change in accounting priniciple		(1)		$ 107
AOCI, ending balance	17,138	12,670
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Sale of noncontrolling interests, net of offering costs	90	196	1,701
San Diego Gas and Electric Company [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
AOCI, beginning balance	5,598
Amounts reclassified from AOCI(2)	4	1	1
Cumulative-effect adjustment from change in accounting priniciple				23
AOCI, ending balance	6,015	5,598
Southern California Gas Company [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
AOCI, beginning balance	3,907
Amounts reclassified from AOCI(2)	2	1	1
Cumulative-effect adjustment from change in accounting priniciple				$ 15
AOCI, ending balance	4,258	3,907
Foreign currency translation adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
AOCI, beginning balance	(420)	(527)	(582)
OCI before reclassifications	(144)	107	42
Amounts reclassified from AOCI(2)	0	0	13
Total other comprehensive income (loss)	(144)	107	55
Cumulative-effect adjustment from change in accounting priniciple		0
AOCI, ending balance	(564)	(420)	(527)
Financial instruments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
AOCI, beginning balance	(122)	(125)	(137)
OCI before reclassifications	40	(4)	(7)
Amounts reclassified from AOCI(2)	3	7	19
Total other comprehensive income (loss)	43	3	12
Cumulative-effect adjustment from change in accounting priniciple		(3)
AOCI, ending balance	(82)	(122)	(125)
Financial instruments [Member] \| Southern California Gas Company [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
AOCI, beginning balance	(13)	(13)	(14)
OCI before reclassifications	0		0
Amounts reclassified from AOCI(2)	1	0	1
Total other comprehensive income (loss)	1	0	1
AOCI, ending balance	(12)	(13)	(13)
Pension and other postretirement benefits [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
AOCI, beginning balance	(84)	(96)	(87)
OCI before reclassifications	(52)	0	(15)
Amounts reclassified from AOCI(2)	18	12	6
Total other comprehensive income (loss)	(34)	12	(9)
Cumulative-effect adjustment from change in accounting priniciple		0
AOCI, ending balance	(118)	(84)	(96)
Pension and other postretirement benefits [Member] \| San Diego Gas and Electric Company [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
AOCI, beginning balance	(8)	(8)	(8)
OCI before reclassifications	(6)	(1)	(1)
Amounts reclassified from AOCI(2)	4	1	1
Total other comprehensive income (loss)	(2)	0	0
AOCI, ending balance	(10)	(8)	(8)
Pension and other postretirement benefits [Member] \| Southern California Gas Company [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
AOCI, beginning balance	(8)	(9)	(5)
OCI before reclassifications	(1)		(4)
Amounts reclassified from AOCI(2)	1	1	0
Total other comprehensive income (loss)	0	1	(4)
AOCI, ending balance	(8)	(8)	(9)
Accumulated other comprehensive income (loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
AOCI, beginning balance	(626)	(748)	(806)
OCI before reclassifications	(156)	103	20
Amounts reclassified from AOCI(2)	21	19	38
Total other comprehensive income (loss)	(135)	122	58
Cumulative-effect adjustment from change in accounting priniciple		(3)
AOCI, ending balance	(764)	(626)	(748)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Sale of noncontrolling interests, net of offering costs			20
Accumulated other comprehensive income (loss) [Member] \| San Diego Gas and Electric Company [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
AOCI, beginning balance	(8)	(8)	(8)
OCI before reclassifications	(6)	(1)	(1)
Amounts reclassified from AOCI(2)	4	1	1
Total other comprehensive income (loss)	(2)	0	0
AOCI, ending balance	(10)	(8)	(8)
Accumulated other comprehensive income (loss) [Member] \| Southern California Gas Company [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
AOCI, beginning balance	(21)	(22)	(19)
OCI before reclassifications	(1)		(4)
Amounts reclassified from AOCI(2)	2	1	1
Total other comprehensive income (loss)	1	1	(3)
AOCI, ending balance	$ (20)	$ (21)	$ (22)

INCOME TAXES - EFFECTS OF THE TAX CUTS AND JOBS ACT OF 2017 (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Schedule of Effect of Changes in Legislation of Income Tax (Expense) [Line Items]
U.S. federal statutory income tax rate		21.00%	35.00%	35.00%
Income tax expense recognized in current period, related to remeasurement of deferred income tax assets and liabilities		$ 20
Income tax expense, related to remeasurement of deferred income tax assets and liabilities		49	$ 182
Increase in net regulatory liabilities from remeasurement of deferred tax income tax assets and liabilities		33	2,402
Decrease in net deferred income tax liabilities due to remeasurement		16	(2,220)
Income tax expense related to deemed repatriation		(8)	328
Foreign undistributed earnings	$ 4,000	3,700	4,000
Foreign earnings repatriated		338
U.S. state and non-U.S. withholding tax expense, related to expected future repatriation of foreign earnings		44	360
Total increase in income tax expense	$ 870	85	$ 870
Undistributed earnings of foreign subsidiaries considered to be indefinitely reinvested		$ 1,000
San Diego Gas and Electric Company [Member]
Schedule of Effect of Changes in Legislation of Income Tax (Expense) [Line Items]
U.S. federal statutory income tax rate		21.00%	35.00%	35.00%
Income tax expense, related to remeasurement of deferred income tax assets and liabilities		$ 0	$ 28
Increase in net regulatory liabilities from remeasurement of deferred tax income tax assets and liabilities		38	1,428
Decrease in net deferred income tax liabilities due to remeasurement		(38)	(1,400)
Income tax expense related to deemed repatriation		0	0
U.S. state and non-U.S. withholding tax expense, related to expected future repatriation of foreign earnings		0	0
Total increase in income tax expense		$ 0	$ 28
Southern California Gas Company [Member]
Schedule of Effect of Changes in Legislation of Income Tax (Expense) [Line Items]
U.S. federal statutory income tax rate		21.00%	35.00%	35.00%
Income tax expense, related to remeasurement of deferred income tax assets and liabilities		$ 0	$ 2
Increase in net regulatory liabilities from remeasurement of deferred tax income tax assets and liabilities		(5)	974
Decrease in net deferred income tax liabilities due to remeasurement		5	(972)
Income tax expense related to deemed repatriation		0	0
U.S. state and non-U.S. withholding tax expense, related to expected future repatriation of foreign earnings		0	0
Total increase in income tax expense		0	$ 2
U.S. Federal [Member]
Schedule of Effect of Changes in Legislation of Income Tax (Expense) [Line Items]
Operating loss valuation allowance		$ 29

SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT - STATEMENT OF COMPREHENSIVE INCOME (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Condensed Statement of Income Captions [Line Items]

Net income

$ 964

$ 334

$ (530)

$ 358

$ (451)

$ 102

$ 248

$ 452

$ 1,126

$ 351

^[1]

$ 1,519

^[1]

Total other comprehensive (loss) income

(133)

142

Pretax amount [Member]

Condensed Statement of Income Captions [Line Items]

Net income

1,146

1,533

1,760

Foreign currency translation adjustments

(144)

107

Financial instruments

(6)

Pension and other postretirement benefits

(38)

(13)

Total other comprehensive (loss) income

(118)

129

Total comprehensive income, after preferred dividends of subsidiaries

1,027

1,661

1,782

Income tax benefit [Member]

Condensed Statement of Income Captions [Line Items]

Net income

(96)

(1,276)

(389)

Foreign currency translation adjustments

Financial instruments

(21)

Pension and other postretirement benefits

(8)

Total other comprehensive (loss) income

(17)

(7)

Total comprehensive income, after preferred dividends of subsidiaries

(113)

(1,283)

(374)

Net-of-tax amount [Member]

Condensed Statement of Income Captions [Line Items]

Net income

1,050

257

1,371

Foreign currency translation adjustments

(144)

107

Financial instruments

Pension and other postretirement benefits

(34)

(9)

Total other comprehensive (loss) income

(135)

122

Total comprehensive income, after preferred dividends of subsidiaries

914

378

1,408

Parent Company [Member]

Condensed Statement of Income Captions [Line Items]

Net income

1,049

256

^[1]

1,370

^[1]

Parent Company [Member] | Pretax amount [Member]

Condensed Statement of Income Captions [Line Items]

Net income

895

223

1,189

Foreign currency translation adjustments

(144)

107

Financial instruments

(6)

Pension and other postretirement benefits

(38)

(13)

Total other comprehensive (loss) income

(118)

129

Total comprehensive income, after preferred dividends of subsidiaries

777

352

1,212

Parent Company [Member] | Income tax benefit [Member]

Condensed Statement of Income Captions [Line Items]

Net income

154

181

Foreign currency translation adjustments

Financial instruments

(21)

Pension and other postretirement benefits

(8)

Total other comprehensive (loss) income

(17)

(7)

Total comprehensive income, after preferred dividends of subsidiaries

137

196

Parent Company [Member] | Net-of-tax amount [Member]

Condensed Statement of Income Captions [Line Items]

Net income

1,049

256

1,370

Foreign currency translation adjustments

(144)

107

Financial instruments

Pension and other postretirement benefits

(34)

(9)

Total other comprehensive (loss) income

(135)

122

Total comprehensive income, after preferred dividends of subsidiaries

$ 914

$ 378

$ 1,408

[1]	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1.

EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2018

Retirement Benefits [Abstract]

Employee Benefit Plans

EMPLOYEE BENEFIT PLANS

For our employee benefit plans, we:


▪	recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status in the statement of financial position;


▪	measure a plan’s assets and its obligations that determine its funded status as of the end of the fiscal year; and


▪	recognize changes in the funded status of pension and PBOP plans in the year in which the changes occur. Generally, those changes are reported in OCI and as a separate component of shareholders’ equity.

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

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

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

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

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

Pension and other postretirement benefits costs and obligations are dependent on assumptions used in calculating such amounts. We review these assumptions on an annual basis and update them as appropriate. We consider current market conditions, including interest rates, in making these assumptions. We use a December 31 measurement date for all of our plans.RABBI TRUSTIn 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 $416 million and $455 million at December 31, 2018 and 2017, respectively.PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS

Benefit Plan Amendments Affecting 2018

In 2018, certain executive participants in a company nonqualified pension plan became eligible in this same plan for Supplemental Executive Retirement Plan benefits. This was treated as a plan amendment and increased the recorded pension liability by $12 million at Sempra Energy and $8 million at SDG&E.

Sale of Qualified Pension Plan Annuity Contracts

In March 2018, an insurance company purchased annuities for certain current annuitants in the SDG&E and SoCalGas qualified pension plans and assumed the obligation for payment of these annuities. At SDG&E in the first quarter of 2018 and at SoCalGas in the second quarter of 2018, the liability transferred for these annuities, plus the total year-to-date lump-sum payments, exceeded the settlement threshold, which triggered settlement accounting. This resulted in a reduction of the recorded pension liability and pension plan assets of $363 million at Sempra Energy Consolidated, including $132 million at SDG&E and $231 million at SoCalGas. This also resulted in settlement charges in net periodic benefit cost of $54 million at Sempra Energy Consolidated, including $22 million at SDG&E and $32 million at SoCalGas. The settlement charges were recorded as regulatory assets on the Consolidated Balance Sheets.

Settlement Accounting for Lump Sum Payments

In 2018, Sempra Energy Consolidated and SDG&E recorded settlement charges of $12 million and $4 million, respectively, and in 2017, Sempra Energy Consolidated recorded settlement charges of $8 million for lump sum payments from its non-qualified pension plans that were in excess of the respective plan’s service cost plus interest cost, thereby triggering settlement accounting.

Acquisition

On March 9, 2018, Sempra Energy completed the Merger, as we discuss in Note 5, and assumed unfunded other postretirement employee benefits obligations for health care and life insurance benefits, resulting in an increase of $21 million in the other postretirement benefit plan liability at Sempra Energy Consolidated.

In 2018, we recorded $27 million in AOCI representing an actuarial loss related to Oncor’s pension plan.

Special Termination Benefits Affecting 2018, 2017 and 2016

In 2018 and 2016, certain nonrepresented, and in 2017, certain represented, employees age 62 or older with 5 years of service or age 55 to 61 with 10 years of service that retired under the Voluntary Retirement Enhancement Program offered in these years received an additional postretirement health benefit in the form of a $100,000 Health Reimbursement Account. We treated the benefit obligation attributable to the Health Reimbursement Account as a special termination benefit. This resulted in increases to the recorded liability for PBOP and net periodic benefit cost of $5 million for Sempra Energy Consolidated, $3 million for SDG&E and $2 million for SoCalGas in 2018, $18 million for each of Sempra Energy Consolidated and SoCalGas in 2017, and $26 million for Sempra Energy Consolidated, $14 million for SDG&E and $11 million for SoCalGas in 2016.

The Voluntary Retirement Enhancement Program resulted in a higher than expected number of retirements in 2017 and 2016. As a result, the total lump-sum benefits paid from the Sempra Energy nonqualified and SoCalGas qualified pension plans in 2017, and the SDG&E qualified pension plan in 2016, exceeded the settlement threshold, which triggered settlement accounting. This resulted in a reduction of the recorded pension liability and pension plan assets of $194 million at Sempra Energy Consolidated and $175 million at SoCalGas in 2017, and $75 million at each of Sempra Energy Consolidated and SDG&E in 2016. This also resulted in settlement charges in net periodic benefit cost of $38 million at Sempra Energy Consolidated and $30 million at SoCalGas in 2017, and $16 million at each of Sempra Energy Consolidated and SDG&E in 2016. The settlement charges at SoCalGas in 2017, and at SDG&E in 2016, were recorded as regulatory assets on the Consolidated Balance Sheets. Measurement dates of December 31, 2017 and 2016 were used for the respective settlement accounting triggered in those years, as the year-to-date lump-sum benefit payments first exceeded the settlement threshold in December of those years.

Benefit Obligations and Assets

The following three tables provide a reconciliation of the changes in the plans’ projected benefit obligations and the fair value of assets during 2018 and 2017, and a statement of the funded status at December 31, 2018 and 2017:



PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS
SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Pension benefits						Other postretirement benefits
	2018			2017			2018			2017
CHANGE IN PROJECTED BENEFIT OBLIGATION
Net obligation at January 1	$	3,857		$	3,679		$	963		$	922
Service cost	124			117			21			21
Interest cost	141			151			36			39
Contributions from plan participants	—			—			23			20
Actuarial (gain) loss	(269		)	286			(123		)	6
Plan amendments	12			1			—			—
Benefit payments	(115		)	(182		)	(74		)	(63		)
Special termination benefits	—			—			5			18
Acquisition	—			—			21			—
Curtailments	—			(1		)	—			—
Settlements	(394		)	(194		)	—			—
Net obligation at December 31	3,356			3,857			872			963

CHANGE IN PLAN ASSETS
Fair value of plan assets at January 1	2,659			2,459			1,209			1,057
Actual return on plan assets	(180		)	421			(56		)	185
Employer contributions	190			155			6			10
Contributions from plan participants	—			—			23			20
Benefit payments	(115		)	(182		)	(74		)	(63		)
Settlements	(394		)	(194		)	—			—
Fair value of plan assets at December 31	2,160			2,659			1,108			1,209
Funded status at December 31	$	(1,196	)	$	(1,198	)	$	236		$	246
Net recorded (liability) asset at December 31	$	(1,196	)	$	(1,198	)	$	236		$	246



PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS
SAN DIEGO GAS & ELECTRIC COMPANY
(Dollars in millions)
	Pension benefits						Other postretirement benefits
	2018			2017			2018			2017
CHANGE IN PROJECTED BENEFIT OBLIGATION
Net obligation at January 1	$	971		$	935		$	185		$	190
Service cost	30			29			5			5
Interest cost	35			38			7			8
Contributions from plan participants	—			—			8			7
Actuarial (gain) loss	(63		)	50			(17		)	(9		)
Plan amendments	8			—			—			—
Benefit payments	(22		)	(83		)	(21		)	(16		)
Special termination benefits	—			—			3			—
Settlements	(145		)	—			—			—
Transfer of liability from other plans	—			2			—			—
Net obligation at December 31	814			971			170			185

CHANGE IN PLAN ASSETS
Fair value of plan assets at January 1	776			714			195			169
Actual return on plan assets	(56		)	120			(12		)	30
Employer contributions	47			22			2			5
Contributions from plan participants	—			—			8			7
Benefit payments	(22		)	(83		)	(21		)	(16		)
Settlements	(145		)	—			—			—
Transfer of assets from other plans	—			3			—			—
Fair value of plan assets at December 31	600			776			172			195
Funded status at December 31	$	(214	)	$	(195	)	$	2		$	10
Net recorded (liability) asset at December 31	$	(214	)	$	(195	)	$	2		$	10



PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS
SOUTHERN CALIFORNIA GAS COMPANY
(Dollars in millions)
	Pension benefits						Other postretirement benefits
	2018			2017			2018			2017
CHANGE IN PROJECTED BENEFIT OBLIGATION
Net obligation at January 1	$	2,486		$	2,343		$	737		$	691
Service cost	81			76			15			14
Interest cost	92			98			27			29
Contributions from plan participants	—			—			14			13
Actuarial (gain) loss	(215		)	216			(100		)	16
Benefit payments	(65		)	(73		)	(49		)	(44		)
Special termination benefits	—			—			2			18
Settlements	(231		)	(175		)	—			—
Transfer of liability from other plans	—			1			—			—
Net obligation at December 31	2,148			2,486			646			737

CHANGE IN PLAN ASSETS
Fair value of plan assets at January 1	1,694			1,579			993			870
Actual return on plan assets	(117		)	269			(43		)	151
Employer contributions	104			93			1			3
Contributions from plan participants	—			—			14			13
Benefit payments	(65		)	(73		)	(49		)	(44		)
Settlements	(231		)	(175		)	—			—
Transfer of assets from other plans	—			1			—			—
Fair value of plan assets at December 31	1,385			1,694			916			993
Funded status at December 31	$	(763	)	$	(792	)	$	270		$	256
Net recorded (liability) asset at December 31	$	(763	)	$	(792	)	$	270		$	256

Actuarial (gains) losses fluctuate based on changes in assumptions that we describe below in “Assumptions for Pension and Other Postretirement Benefit Plans” and updates to census data. In 2018, 2017 and 2016, the Society of Actuaries released updated mortality improvement projection scales, reflecting changes to projected observed longevity improvements in its mortality tables. We have incorporated these assumptions, adjusted for the Sempra Energy companies’ actual mortality experience, in our calculations for each of those years. Actuarial gains in pension plans at Sempra Energy Consolidated in 2018 were driven primarily by an increase in discount rates at SDG&E, SoCalGas and Sempra Energy and, additionally at SDG&E, due to updated census data, and at SoCalGas, due to a decrease in the conversion rate used to determine lump-sum distributions. The actuarial gains were partially offset by actuarial losses at SoCalGas and Sempra Energy due to updated census data and, additionally at SDG&E and SoCalGas, due to an increase in the interest crediting rate for the cash balance plans. Actuarial gains in PBOP plans at Sempra Energy Consolidated in 2018 were driven primarily by an increase in discount rates at SDG&E and SoCalGas and, additionally at SoCalGas, due to a reduction in the 2019 expected health care costs.

Net Assets and Liabilities

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

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

We recognize the overfunded or underfunded status of defined benefit pension and other postretirement plans as assets or liabilities, respectively; unrecognized changes in these assets and/or liabilities are normally recorded in AOCI on the balance sheet. The California Utilities record regulatory assets and liabilities that offset the funded pension and other postretirement plans’ assets or liabilities, as these costs are expected to be recovered in future utility rates based on decisions by regulatory agencies.

The California Utilities record annual pension and other postretirement net periodic benefit costs equal to the contributions to their qualified plans as authorized by the CPUC. The annual contributions to the pension plans are limited to a minimum required funding amount as determined by the IRS. The annual contributions to PBOP plans are equal to the lesser of the maximum tax deductible amount or the net periodic cost calculated in accordance with U.S. GAAP for pension and PBOP plans. Any differences between booked net periodic benefit cost and amounts contributed to the pension and other postretirement plans for the California Utilities are disclosed as regulatory adjustments in accordance with U.S. GAAP for rate-regulated entities.

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



PENSION AND OTHER POSTRETIREMENT BENEFIT OBLIGATIONS, NET OF PLAN ASSETS
(Dollars in millions)
	Pension benefits						Other postretirement benefits
	2018			2017			2018			2017
Sempra Energy Consolidated:
Noncurrent assets	$	—		$	—		$	272		$	266
Current liabilities	(65		)	(69		)	(6		)	(1		)
Noncurrent liabilities	(1,131		)	(1,129		)	(30		)	(19		)
Net recorded (liability) asset	$	(1,196	)	$	(1,198	)	$	236		$	246
SDG&E:
Noncurrent assets	$	—		$	—		$	2		$	10
Current liabilities	(2		)	(13		)	—			—
Noncurrent liabilities	(212		)	(182		)	—			—
Net recorded (liability) asset	$	(214	)	$	(195	)	$	2		$	10
SoCalGas:
Noncurrent assets	$	—		$	—		$	270		$	256
Current liabilities	(3		)	(3		)	—			—
Noncurrent liabilities	(760		)	(789		)	—			—
Net recorded (liability) asset	$	(763	)	$	(792	)	$	270		$	256

Amounts recorded in AOCI at December 31, net of income tax effects and amounts recorded as regulatory assets, are as follows:



AMOUNTS IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
	Pension benefits						Other postretirement benefits
	2018			2017			2018		2017
Sempra Energy Consolidated:
Net actuarial (loss) gain	$	(114	)	$	(84	)	$	8	$	4
Prior service cost	(12		)	(4		)	—		—
Total	$	(126	)	$	(88	)	$	8	$	4
SDG&E:
Net actuarial loss	$	(4	)	$	(8	)
Prior service cost	(6		)	—
Total	$	(10	)	$	(8	)
SoCalGas:
Net actuarial loss	$	(6	)	$	(6	)
Prior service cost	(2		)	(2		)
Total	$	(8	)	$	(8	)

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



OBLIGATIONS OF FUNDED PENSION PLANS
(Dollars in millions)
	2018		2017
Sempra Energy Consolidated:
Projected benefit obligation	$	3,130	$	3,623
Accumulated benefit obligation	2,894		3,334
Fair value of plan assets	2,160		2,659
SDG&E:
Projected benefit obligation	$	788	$	939
Accumulated benefit obligation	762		900
Fair value of plan assets	600		776
SoCalGas:
Projected benefit obligation	$	2,123	$	2,462
Accumulated benefit obligation	1,919		2,220
Fair value of plan assets	1,385		1,694

We also have unfunded pension plans at Sempra Energy, SDG&E, SoCalGas, IEnova and Chilquinta Energía. The following table shows the obligations of unfunded pension plans at December 31:



OBLIGATIONS OF UNFUNDED PENSION PLANS
(Dollars in millions)
	2018		2017
Sempra Energy Consolidated:
Projected benefit obligation	$	226	$	234
Accumulated benefit obligation	201		215
SDG&E:
Projected benefit obligation	$	26	$	32
Accumulated benefit obligation	19		30
SoCalGas:
Projected benefit obligation	$	25	$	24
Accumulated benefit obligation	21		21

Sempra Energy, SDG&E and SoCalGas each have a funded other postretirement benefit plan. The following table shows the obligations of funded other postretirement benefit plans with accumulated postretirement benefit obligations in excess of plan assets at December 31:



OBLIGATIONS OF FUNDED OTHER POSTRETIREMENT BENEFIT PLANS
(Dollars in millions)
	2018		2017
Sempra Energy Consolidated:
Accumulated postretirement benefit obligation	$	30	$	32
Fair value of plan assets	20		21

We also have unfunded other postretirement benefit plans at Sempra Energy and Chilquinta Energía. The following table shows the obligations of unfunded other postretirement benefit plans at December 31:



OBLIGATIONS OF UNFUNDED OTHER POSTRETIREMENT BENEFIT PLANS
(Dollars in millions)
	2018		2017
Sempra Energy Consolidated:
Accumulated postretirement benefit obligation	$	26	$	9

Net Periodic Benefit Cost

The following tables provide the components of net periodic benefit cost and pretax amounts recognized in OCI for the years ended December 31:



NET PERIODIC BENEFIT COST AND AMOUNTS RECOGNIZED IN OCI
SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Pension benefits									Other postretirement benefits
	2018			2017			2016			2018			2017			2016
NET PERIODIC BENEFIT COST
Service cost	$	124		$	117		$	107		$	21		$	21		$	20
Interest cost	141			151			160			36			39			42
Expected return on assets	(157		)	(161		)	(166		)	(70		)	(66		)	(69		)
Amortization of:
Prior service cost	11			11			11			1			1			—
Actuarial loss (gain)	23			36			30			(6		)	(4		)	(1		)
Settlement charges	66			38			16			—			—			—
Special termination benefits	—			—			—			5			18			26
Net periodic benefit cost	208			192			158			(13		)	9			18
Regulatory adjustment	(30		)	(42		)	(57		)	17			—			(11		)
Total expense recognized	178			150			101			4			9			7

CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS
RECOGNIZED IN OCI
Net loss (gain)	56			—			26			(4		)	(2		)	(2		)
Prior service cost	12			1			—			—			—			—
Amortization of actuarial loss	(12		)	(10		)	(10		)	—			—			—
Amortization of prior service cost	(2		)	(1		)	(1		)	—			—			—
Settlements	(12		)	(8		)	—			—			—			—
Total recognized in OCI	42			(18		)	15			(4		)	(2		)	(2		)
Total recognized in net periodic benefit cost and OCI	$	220		$	132		$	116		$	—		$	7		$	5



NET PERIODIC BENEFIT COST AND AMOUNTS RECOGNIZED IN OCI
SAN DIEGO GAS & ELECTRIC COMPANY
(Dollars in millions)
	Pension benefits									Other postretirement benefits
	2018			2017			2016			2018			2017			2016
NET PERIODIC BENEFIT COST
Service cost	$	30		$	29		$	29		$	5		$	5		$	5
Interest cost	35			38			41			7			8			7
Expected return on assets	(47		)	(47		)	(49		)	(13		)	(11		)	(12		)
Amortization of:
Prior service cost	2			1			1			3			3			3
Actuarial loss (gain)	1			9			10			(3		)	—			(1		)
Settlement charges	26			—			16			—			—			—
Special termination benefits	—			—			—			3			—			14
Net periodic benefit cost	47			30			48			2			5			16
Regulatory adjustment	(8		)	(8		)	(45		)	—			—			(14		)
Total expense recognized	39			22			3			2			5			2

CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS
RECOGNIZED IN OCI
Net (gain) loss	(1		)	2			1			—			—			—
Prior service cost	8			—			—			—			—			—
Amortization of actuarial loss	(1		)	(1		)	(1		)	—			—			—
Settlements	(4		)	—			—			—			—			—
Total recognized in OCI	2			1			—			—			—			—
Total recognized in net periodic benefit cost and OCI	$	41		$	23		$	3		$	2		$	5		$	2



NET PERIODIC BENEFIT COST AND AMOUNTS RECOGNIZED IN OCI
SOUTHERN CALIFORNIA GAS COMPANY
(Dollars in millions)
	Pension benefits									Other postretirement benefits
	2018			2017			2016			2018			2017			2016
NET PERIODIC BENEFIT COST
Service cost	$	81		$	76		$	67		$	15		$	14		$	14
Interest cost	92			98			101			27			29			32
Expected return on assets	(98		)	(103		)	(103		)	(56		)	(53		)	(56		)
Amortization of:
Prior service cost (credit)	8			9			9			(3		)	(3		)	(4		)
Actuarial loss (gain)	13			19			11			(2		)	(3		)	—
Settlement charges	32			30			—			—			—			—
Special termination benefits	—			—			—			2			18			11
Net periodic benefit cost	128			129			85			(17		)	2			(3		)
Regulatory adjustment	(22		)	(34		)	(12		)	17			—			3
Total expense recognized	106			95			73			—			2			—

CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS
RECOGNIZED IN OCI
Net loss	1			—			4			—			—			—
Prior service cost	—			—			2			—			—			—
Amortization of prior service cost	(1		)	(1		)	—			—			—			—
Total recognized in OCI	—			(1		)	6			—			—			—
Total recognized in net periodic benefit cost and OCI	$	106		$	94		$	79		$	—		$	2		$	—

Assumptions for Pension and Other Postretirement Benefit Plans

Benefit Obligation and Net Periodic Benefit Cost

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

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


▪	have an outstanding issue of at least $50 million;


▪	are non-callable (or callable with make-whole provisions);


▪	exclude collateralized bonds; and


▪	exclude the top and bottom 10 percent of yields to avoid relying on bonds that might be mispriced or misgraded.

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


▪	the issuer is on review for downgrade by a major rating agency if the downgrade would eliminate the issuer from the portfolio;


▪	recent events have caused significant price volatility to which rating agencies have not reacted; and


▪	lack of liquidity is causing price quotes to vary significantly from broker to broker.

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

We develop the discount rate assumptions for the plans at IEnova by constructing a synthetic government zero coupon bond yield curve from the available market data, based on duration matching, and we add a risk spread to allow for the yields of high-quality corporate bonds. We develop the discount rate assumptions for the plans at Chilquinta Energía based on 10-year Chilean government bond yields and the expected local long-term rate of inflation. These methods for developing the discount rate are required when there is no deep market for high quality corporate bonds.

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

Interest crediting rate is based on an average 30-year Treasury bond from the month of November of the preceding year.

We amortize prior service cost using straight line amortization over average future service (or average expected lifetime for plans where participants are substantially inactive employees), which is an alternative method allowed under U.S. GAAP.

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



WEIGHTED-AVERAGE ASSUMPTIONS USED TO DETERMINE BENEFIT OBLIGATION
AT DECEMBER 31
	Pension benefits				Other postretirement benefits
	2018		2017		2018		2017
Sempra Energy Consolidated:
Discount rate	4.30	%	3.65	%	4.30	%	3.70	%
Interest crediting rate⁽¹⁾⁽²⁾	3.36		2.80		3.36		2.80
Rate of compensation increase	2.00-10.00		2.00-10.00		2.00-10.00		2.00-10.00
SDG&E:
Discount rate	4.29	%	3.64	%	4.30	%	3.65	%
Interest crediting rate⁽¹⁾⁽²⁾	3.36		2.80		3.36		2.80
Rate of compensation increase	2.00-10.00		2.00-10.00		2.00-10.00		2.00-10.00
SoCalGas:
Discount rate	4.30	%	3.65	%	4.30	%	3.70	%
Interest crediting rate⁽¹⁾⁽²⁾	3.36		2.80		3.36		2.80
Rate of compensation increase	2.00-10.00		2.00-10.00		2.00-10.00		2.00-10.00

⁽¹⁾ Interest crediting rate for pension benefits applies only to funded cash balance plans.

⁽²⁾ Interest crediting rate for other postretirement benefits applies only to interest bearing health retirement accounts at SDG&E and SoCalGas.



WEIGHTED-AVERAGE ASSUMPTIONS USED TO DETERMINE NET PERIODIC BENEFIT COST
YEARS ENDED DECEMBER 31
	Pension benefits						Other postretirement benefits
	2018		2017		2016		2018		2017		2016
Sempra Energy Consolidated:
Discount rate	3.65	%	4.08	%	4.46	%	3.70	%	4.19	%	4.49	%
Expected return on plan assets	7.00		7.00		7.00		6.49		6.47		6.98
Interest crediting rate⁽¹⁾⁽²⁾	2.80		2.86		3.03		2.80		2.86		3.03
Rate of compensation increase	2.00-10.00		2.00-10.00		2.00-10.00		2.00-10.00		2.00-10.00		2.00-10.00
SDG&E:
Discount rate	3.64	%	4.08	%	4.35	%	3.65	%	4.15	%	4.50	%
Expected return on plan assets	7.00		7.00		7.00		6.94		6.91		6.90
Interest crediting rate⁽¹⁾⁽²⁾	2.80		2.86		3.03		2.80		2.86		3.03
Rate of compensation increase	2.00-10.00		2.00-10.00		2.00-10.00		2.00-10.00		2.00-10.00		2.00-10.00
SoCalGas:
Discount rate	3.65	%	4.10	%	4.50	%	3.70	%	4.20	%	4.50	%
Expected return on plan assets	7.00		7.00		7.00		6.38		6.37		7.00
Interest crediting rate⁽¹⁾⁽²⁾	2.80		2.86		3.03		2.80		2.86		3.03
Rate of compensation increase	2.00-10.00		2.00-10.00		2.00-10.00		2.00-10.00		2.00-10.00		2.00-10.00

⁽¹⁾ Interest crediting rate for pension benefits applies only to funded cash balance plans.

⁽²⁾ Interest crediting rate for other postretirement benefits applies only to interest bearing health retirement accounts at SDG&E and SoCalGas.

Health Care Cost Trend Rates

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



ASSUMED HEALTH CARE COST TREND RATES
AT DECEMBER 31
	Other postretirement benefit plans
	Pre-65 retirees						Retirees aged 65 years and older
	2018		2017		2016		2018		2017		2016
Health care cost trend rate assumed for next year	6.50	%	7.00	%	8.00	%	4.75	%	5.00	%	5.50	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend)	4.75	%	5.00	%	5.00	%	4.50	%	4.50	%	4.50	%
Year the rate reaches the ultimate trend	2025		2022		2022		2022		2022		2022

Plan Assets

Investment Allocation Strategy for Sempra Energy’s Pension Master Trust

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

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


▪	35 percent domestic equity;


▪	24 percent international equity;


▪	18 percent long credit;


▪	8 percent ultra-long duration government securities;


▪	5 percent global real estate investment trusts;


▪	5 percent return-seeking credit; and


▪	5 percent real assets.

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


▪	long-term cost;


▪	variability and level of contributions;


▪	funded status; and


▪	a range of expected outcomes over varying confidence levels.

We maintain asset allocations at strategic levels with reasonable bands of variance.

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

Rate of Return Assumption

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

Concentration of Risk

Plan assets are diversified across global equity and bond markets, and concentration of risk in any one economic, industry, maturity or geographic sector is limited.

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

SDG&E’s and SoCalGas’ PBOP plans are funded by cash contributions from SDG&E and SoCalGas and their current retirees. The assets of these plans are placed into the pension master trust and other Voluntary Employee Beneficiary Association trusts. Certain assets of SoCalGas’ PBOP plans, which are held in the pension master trust, are invested based on an allocation that seeks to mitigate risks for the assets of these plans, with 38 percent invested in return-seeking and 62 percent invested in risk-mitigating assets. The assets in the Voluntary Employee Beneficiary Association trusts are invested at an allocation similar to the pension master trust, with 74 percent invested in return-seeking and 26 percent invested in risk-mitigating assets. These allocations are periodically reviewed to ensure that plan assets are best positioned to meet plan obligations.Fair Value of Pension and Other Postretirement Benefit Plan Assets

We classify the investments in Sempra Energy’s pension master trust and the trusts for the California Utilities’ PBOP plans based on the fair value hierarchy, except for certain investments measured at NAV.

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

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

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

Registered Investment Companies – Investments in mutual funds sponsored by a registered investment company are valued based on exchange listed prices. Where the value is a quoted price in an active market, the investment is classified within Level 1 of the fair value hierarchy. Investments in certain fixed income securities are valued under a discounted cash flow

approach that maximizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks for the remaining fixed income securities.

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

Private Equity Funds – These funds consist of investments in private equities that are held by limited partnerships following various strategies, including private equity and corporate finance. These partnerships generally have limited lives of 10 years, after which liquidating distributions will be received. The value is determined based on the NAV of the proportionate share of an ownership interest in partners’ capital. Holdings in these types of private equity funds are negligible, as the funds are well past their expected investment term and have distributed the bulk of proceeds from investment sales.

Derivative Financial Instruments – Futures contracts that are publicly traded in active markets are valued at closing prices as of the last business day of the year. Forward currency contracts are valued at the prevailing forward exchange rate of the underlying currencies, and unrealized gain (loss) is recorded daily. Fixed income futures and options are marked to market daily. Equity index futures contracts are valued at the last sales price quoted on the exchange on which they primarily trade.

While management believes the valuation methods described above are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

We provide more discussion of fair value measurements in Notes 1 and 12. The following tables set forth by level within the fair value hierarchy a summary of the investments in our pension and other postretirement benefit plan trusts measured at fair value on a recurring basis.

SDG&E and SoCalGas each hold a proportionate share of investment assets in the pension master trust at Sempra Energy Consolidated. The fair values of our pension plan assets by asset category are as follows:



FAIR VALUE MEASUREMENTS – INVESTMENT ASSETS OF PENSION PLANS
(Dollars in millions)
	Fair value at December 31, 2018
	Level 1		Level 2		Total
Sempra Energy Consolidated:
Equity securities:
Domestic	$	727	$	—	$	727
International	437		—		437
Registered investment companies	74		—		74
Fixed income securities:
Domestic government bonds	197		29		226
International government bonds	—		8		8
Domestic corporate bonds	—		311		311
International corporate bonds	—		53		53
Registered investment companies	—		1		1
Total investment assets in the fair value hierarchy	$	1,435	$	402	1,837
Investments measured at NAV:
Common/collective trusts					326
Private equity funds					4
Total investment assets⁽¹⁾					$	2,167
SDG&E’s proportionate share of investment assets					$	602
SoCalGas’ proportionate share of investment assets					$	1,389

	Fair value at December 31, 2017
	Level 1		Level 2		Total
Sempra Energy Consolidated:
Equity securities:
Domestic	$	946	$	—	$	946
International	538		—		538
Registered investment companies	102		—		102
Fixed income securities:
Domestic government bonds	242		27		269
International government bonds	—		12		12
Domestic corporate bonds	—		338		338
International corporate bonds	—		64		64
Registered investment companies	—		6		6
Other	—		1		1
Total investment assets in the fair value hierarchy	$	1,828	$	448	2,276
Investments measured at NAV:
Common/collective trusts					384
Private equity funds					4
Total investment assets⁽²⁾					$	2,664
SDG&E’s proportionate share of investment assets					$	777
SoCalGas’ proportionate share of investment assets					$	1,697


⁽¹⁾	Excludes cash and cash equivalents of $14 million and accounts payable of $21 million.


⁽²⁾	Excludes cash and cash equivalents of $13 million and accounts payable of $18 million.

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



FAIR VALUE MEASUREMENTS – INVESTMENT ASSETS OF OTHER POSTRETIREMENT BENEFIT PLANS
(Dollars in millions)
	Fair value at December 31, 2018
	Level 1			Level 2		Total
SDG&E:
Equity securities:
Domestic	$	37		$	—	$	37
International	22			—		22
Registered investment companies	59			—		59
Fixed income securities:
Domestic government bonds	10			1		11
Domestic corporate bonds	—			16		16
International corporate bonds	—			3		3
Registered investment companies	—			7		7
Total investment assets in the fair value hierarchy	128			27		155
Investments measured at NAV – Common/collective trusts						17
Total investment assets⁽¹⁾						172

SoCalGas:
Equity securities:
Domestic	66			—		66
International	39			—		39
Registered investment companies	62			—		62
Fixed income securities:
Domestic government bonds	236			13		249
International government bonds	1			4		5
Domestic corporate bonds	—			175		175
International corporate bonds	—			21		21
Registered investment companies	—			64		64
Derivative financial instruments	(4		)	—		(4		)
Total investment assets in the fair value hierarchy	400			277		677
Investments measured at NAV – Common/collective trusts						237
Total investment assets⁽²⁾						914

Other Sempra Energy:
Equity securities:
Domestic	6			—		6
International	4			—		4
Fixed income securities:
Domestic government bonds	2			—		2
Domestic corporate bonds	—			2		2
Registered investment companies	—			1		1
Total investment assets in the fair value hierarchy	12			3		15
Investments measured at NAV – Common/collective trusts						4
Private equity funds						1
Total other Sempra Energy investment assets						20

Total Sempra Energy Consolidated investment assets in the fair value hierarchy	$	540		$	307
Total Sempra Energy Consolidated investment assets⁽³⁾						$	1,106


⁽¹⁾	Excludes cash and cash equivalents of $1 million and accounts payable of $1 million held in SDG&E PBOP plan trusts.


⁽²⁾	Excludes cash and cash equivalents of $6 million and accounts payable of $4 million held in SoCalGas PBOP plan trusts.


⁽³⁾	Excludes cash and cash equivalents of $7 million and accounts payable of $5 million at Sempra Energy Consolidated.



FAIR VALUE MEASUREMENTS – INVESTMENT ASSETS OF OTHER POSTRETIREMENT BENEFIT PLANS
(Dollars in millions)
	Fair value at December 31, 2017
	Level 1		Level 2		Total
SDG&E:
Equity securities:
Domestic	$	46	$	—	$	46
International	26		—		26
Registered investment companies	52		—		52
Fixed income securities:
Domestic government bonds	12		1		13
International government bonds	—		1		1
Domestic corporate bonds	—		17		17
International corporate bonds	—		3		3
Registered investment companies	—		17		17
Total investment assets in the fair value hierarchy	136		39		175
Investments measured at NAV – Common/collective trusts					20
Total investment assets⁽¹⁾					195

SoCalGas:
Equity securities:
Domestic	78		—		78
International	44		—		44
Registered investment companies	41		—		41
Fixed income securities:
Domestic government bonds	125		13		138
International government bonds	—		7		7
Domestic corporate bonds	—		164		164
International corporate bonds	—		28		28
Registered investment companies	—		85		85
Total investment assets in the fair value hierarchy	288		297		585
Investments measured at NAV – Common/collective trusts					406
Total investment assets⁽²⁾					991

Other Sempra Energy:
Equity securities:
Domestic	7		—		7
International	5		—		5
Registered investment companies	1		—		1
Fixed income securities:
Domestic government bonds	1		1		2
Domestic corporate bonds	—		2		2
International corporate bonds	—		1		1
Total investment assets in the fair value hierarchy	14		4		18
Investments measured at NAV – Common/collective trusts					2
Private equity funds					1
Total other Sempra Energy investment assets					21

Total Sempra Energy Consolidated investment assets in the fair value hierarchy	$	438	$	340
Total Sempra Energy Consolidated investment assets⁽³⁾					$	1,207


⁽¹⁾	Excludes cash and cash equivalents of $1 million and accounts payable of $1 million held in SDG&E PBOP plan trusts.


⁽²⁾	Excludes cash and cash equivalents of $4 million and accounts payable of $2 million held in SoCalGas PBOP plan trusts.

⁽³⁾

Excludes cash and cash equivalents of $5 million and accounts payable of $3 million at Sempra Energy Consolidated.Future Payments

We expect to contribute the following amounts to our pension and PBOP plans in 2019:



EXPECTED CONTRIBUTIONS
(Dollars in millions)
	Sempra Energy Consolidated		SDG&E		SoCalGas
Pension plans	$	228	$	40	$	118
Other postretirement benefit plans	10		—		1

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



EXPECTED BENEFIT PAYMENTS
(Dollars in millions)
	Sempra Energy Consolidated				SDG&E				SoCalGas
	Pension benefits		Other postretirement benefits		Pension benefits		Other postretirement benefits		Pension benefits		Other postretirement benefits
2019	$	416	$	54	$	109	$	10	$	207	$	36
2020	270		51		69		10		159		36
2021	268		52		64		10		154		37
2022	246		52		61		11		152		37
2023	236		52		62		11		149		38
2024-2028	1,097		257		282		51		698		187

PROFIT SHARING PLANS

Under Chilean law, Chilquinta Energía is required to pay all employees either (1) 30 percent of Chilquinta Energía’s taxable income after deducting a 10-percent ROE, allocated in proportion to the annual salary of each employee or (2) 25 percent of each employee’s annual salary, with a maximum mandatory profit sharing of 4.75 months of Chile’s legal minimum salary. Chilquinta Energía has elected the second option but calculates the profit sharing amounts with actual employee salaries instead of the legal minimum salary, resulting in a higher cost. The amounts are paid out each pay period. Chilquinta Energía recorded annual profit sharing expense of $7 million, $7 million and $5 million in 2018, 2017 and 2016, respectively, related to this plan.

Under Peruvian law, Luz del Sur is required to pay their employees 5 percent of Luz del Sur’s taxable income, paid once a year and allocated as follows: 50 percent based on each employee’s annual hours worked and 50 percent based on each employee’s annual salary. Luz del Sur recorded annual profit sharing expense of $13 million, $12 million and $10 million in 2018, 2017 and 2016, respectively, related to this plan.

SAVINGS PLANS

Sempra Energy offers trusteed savings plans to all domestic employees, all employees in Mexico and certain employees in Chile. Employee participation, employee contributions and employer matching contributions are subject to the provisions of the respective plans, and for employee contributions, limits imposed by the respective governmental authorities.

Employer contributions to the savings plans were as follows:



EMPLOYER CONTRIBUTIONS TO SAVINGS PLANS
(Dollars in millions)
	2018		2017		2016
Sempra Energy Consolidated	$	43	$	41	$	42
SDG&E	15		14		15
SoCalGas	23		22		22

The market value of Sempra Energy common stock held by the savings plans was $1.0 billion and $1.1 billion at December 31, 2018 and 2017, respectively.

ACQUISTION AND DIVESTITURE ACTIVITY - Sempra Texas Utility (Details) - USD ($) $ in Millions						1 Months Ended	3 Months Ended		12 Months Ended
	Jul. 13, 2018	Mar. 09, 2018	Mar. 08, 2018	Jan. 12, 2018	Jan. 09, 2018	Jan. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Repayments of debt				$ 800		$ 800
Issuances of common stock, net of $41 in offering costs in 2018									$ 2,272	$ 47	$ 51
Oncor Holdings Electric Delivery Company LLC [Member]
Business Acquisition [Line Items]
Acquired percentage interest		80.25%
Oncor Electric Delivery Company LLC [Member]
Business Acquisition [Line Items]
Acquired percentage interest		80.25%
Sempra Texas Holdings Corp [Member]
Business Acquisition [Line Items]
Proceeds from issuance of debt and equity						$ 7,000
Sempra Texas Holdings Corp [Member] \| Oncor Electric Delivery Company LLC [Member]
Business Acquisition [Line Items]
Acquired percentage interest		80.03%
Oncor Electric Delivery Company LLC [Member] \| Oncor Electric Delivery Company LLC Additional Acquisition [Member] \| Oncor Holdings Electric Delivery Company LLC [Member]
Business Acquisition [Line Items]
Ownership percentage in consolidated entity		0.22%
Acquired percentage interest		0.22%
Consideration transferred		$ 26
Sempra Texas Intermediate Holding Company LLC [Member] \| Sempra Texas Holdings Corp [Member] \| Oncor Holdings Electric Delivery Company LLC [Member]
Business Acquisition [Line Items]
Ownership percentage in consolidated entity		100.00%
Sempra Texas Intermediate Holding Company LLC [Member] \| Oncor Electric Delivery Company LLC Additional Acquisition [Member] \| Oncor Holdings Electric Delivery Company LLC [Member]
Business Acquisition [Line Items]
Cash consideration (fair value of total consideration)		$ 26
Texas Transmission Investment LLC [Member] \| Sempra Texas Holdings Corp [Member] \| Oncor Electric Delivery Company LLC [Member]
Business Acquisition [Line Items]
Ownership percentage held by noncontrolling owners		19.75%
Oncor Holdings Electric Delivery Company LLC [Member] \| Sempra Texas Holdings Corp [Member]
Business Acquisition [Line Items]
Cash consideration (fair value of total consideration)		$ 9,450
Additional consideration transfered		31
Transaction costs incurred		$ 59
Common Stock [Member]
Business Acquisition [Line Items]
Shares issued (in shares)	11,212,500		8,556,630		26,869,158		7,651,671	8,556,630
Settlement of Forward Sale Contracts [Member] \| Common Stock [Member]
Business Acquisition [Line Items]
Issuances of common stock, net of $41 in offering costs in 2018			$ 900				$ 800	$ 900
Payments of stock issuance costs			16
Commercial paper [Member] \| Oncor Holdings Electric Delivery Company LLC [Member] \| Sempra Texas Holdings Corp [Member]
Business Acquisition [Line Items]
Proceeds from issuance of debt			$ 2,600
Weighted average term, of line of credit			47 days
Weighted average rate			2.20%

EMPLOYEE BENEFIT PLANS - SAVINGS PLANS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Savings Plan [Line Items]
Employer contributions to defined benefit plan	$ 43	$ 41	$ 42
Market value of employer stock held by plan	1,000	1,100
San Diego Gas and Electric Company [Member]
Savings Plan [Line Items]
Employer contributions to defined benefit plan	15	14	15
Southern California Gas Company [Member]
Savings Plan [Line Items]
Employer contributions to defined benefit plan	$ 23	$ 22	$ 22

INCOME TAXES - UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of Unrecognized Tax Benefits
Beginning balance	$ 89	$ 90	$ 87
Increase in prior period tax positions	7	22	2
Decrease in prior period tax positions	(1)	(15)	(2)
Increase in current period tax positions	24	4	6
Settlements with taxing authorities	0	(12)	(3)
Ending balance	119	89	90
Of the total, amounts related to tax positions that, if recognized, in future years, would decrease the effective tax rate	(107)	(77)	(87)
Of the total, amounts related to tax positions that, if recognized, in future years, would increase the effective tax rate	24	20	36
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract]
Accrued interest and penalties	1	0
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense [Abstract]
Interest income and penalties on unrecognized income tax benefits	1	0	0
San Diego Gas and Electric Company [Member]
Reconciliation of Unrecognized Tax Benefits
Beginning balance	10	22	20
Increase in prior period tax positions	1	9	0
Decrease in prior period tax positions	0	(11)	0
Increase in current period tax positions	0	0	2
Settlements with taxing authorities	0	(10)	0
Ending balance	11	10	22
Of the total, amounts related to tax positions that, if recognized, in future years, would decrease the effective tax rate	(9)	(7)	(19)
Of the total, amounts related to tax positions that, if recognized, in future years, would increase the effective tax rate	1	1	13
Southern California Gas Company [Member]
Reconciliation of Unrecognized Tax Benefits
Beginning balance	35	29	27
Increase in prior period tax positions	2	3	0
Decrease in prior period tax positions	0	0	(2)
Increase in current period tax positions	24	4	4
Settlements with taxing authorities	0	(1)	0
Ending balance	61	35	29
Of the total, amounts related to tax positions that, if recognized, in future years, would decrease the effective tax rate	(51)	(26)	(29)
Of the total, amounts related to tax positions that, if recognized, in future years, would increase the effective tax rate	$ 23	$ 20	$ 24

COMMITMENTS AND CONTINGENCIES - LONG-TERM PURCHASE COMMITMENT (Details) - USD ($) $ in Millions		1 Months Ended		12 Months Ended
	Mar. 13, 2017	May 31, 2017	May 31, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Long-term Purchase Commitment [Line Items]
Litigation settlement payable	$ 118
Sempra LNG & Midstream [Member]
Long-term Purchase Commitment [Line Items]
Loss on release of pipeline capacity			$ 206
Litigation settlement payable		$ 57	47
San Diego Gas and Electric Company [Member]
Long-term Purchase Commitment [Line Items]
Litigation settlement payable	$ 24
Sempra LNG & Midstream [Member]
Long-term Purchase Commitment [Line Items]
Loss on release of pipeline capacity net of tax			$ 123
Natural Gas Contracts [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
2019				$ 263
2020				173
2021				156
2022				85
2023				63
Thereafter				280
Total estimated payments				1,020
Purchases				1,345	$ 1,429	$ 1,169
Natural Gas Contracts [Member] \| SoCalGas [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
2019				126
2020				122
2021				104
2022				37
2023				24
Thereafter				49
Total estimated payments				462
Purchases				1,169	1,213	966
Natural Gas Storage and Transportation Contracts [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
2019				230
2020				158
2021				144
2022				73
2023				50
Thereafter				262
Total estimated payments				917
Natural Gas Transportation Contracts [Member] \| SoCalGas [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
2019				114
2020				118
2021				104
2022				37
2023				23
Thereafter				49
Total estimated payments				445
Natural Gas Supply Contracts [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
2019				33
2020				15
2021				12
2022				12
2023				13
Thereafter				18
Total estimated payments				103
Natural Gas Supply Contracts [Member] \| SoCalGas [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
2019				12
2020				4
2021				0
2022				0
2023				1
Thereafter				0
Total estimated payments				17
Liquefied Natural Gas Contracts [Member] \| Sempra LNG & Midstream [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
2019				289
2020				372
2021				368
2022				373
2023				385
Thereafter				2,475
Total estimated payments				$ 4,262
Long-term Contracts [Member] \| San Diego Gas and Electric Company [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
Purchase commitment component percentage				37.00%
Renewable Energy Contracts Expiring Through 2041 [Member] \| San Diego Gas and Electric Company [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
Purchase commitment component percentage				36.00%
Other Owned Generation [Member] \| San Diego Gas and Electric Company [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
Purchase commitment component percentage				55.00%
Spot Market Purchases [Member] \| San Diego Gas and Electric Company [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
Purchase commitment component percentage				8.00%
Purchased Power Contracts [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
2019				$ 654
2020				629
2021				631
2022				592
2023				549
Thereafter				5,185
Total estimated payments				8,240
Purchases				1,582	1,694	1,667
Purchased Power Contracts [Member] \| SDG&E [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
2019				527
2020				510
2021				510
2022				496
2023				451
Thereafter				5,026
Total estimated payments				7,520
Purchases				712	$ 781	$ 752
Renewable Energy PPAs [Member] \| SDG&E [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
Total estimated payments				$ 5,200

SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following tables show selected information by segment from our Consolidated Statements of Operations and Consolidated Balance Sheets. We provide information about our equity method investments by segment in Note 6. Amounts labeled as “All other” in the following tables consist primarily of activities of parent organizations.



SEGMENT INFORMATION
(Dollars in millions)
	Years ended December 31,
	2018			2017			2016
REVENUES
SDG&E	$	4,568		$	4,476		$	4,253
SoCalGas	3,962			3,785			3,471
Sempra South American Utilities	1,585			1,567			1,556
Sempra Mexico	1,376			1,196			725
Sempra Renewables	124			94			34
Sempra LNG & Midstream	472			540			508
Adjustments and eliminations	(3		)	(1		)	—
Intersegment revenues⁽¹⁾	(397		)	(450		)	(364		)
Total	$	11,687		$	11,207		$	10,183
INTEREST EXPENSE
SDG&E	$	221		$	203		$	195
SoCalGas	115			102			97
Sempra South American Utilities	40			38			38
Sempra Mexico	120			97			13
Sempra Renewables	19			15			4
Sempra LNG & Midstream	21			39			43
All other	496			284			282
Intercompany eliminations	(107		)	(119		)	(119		)
Total	$	925		$	659		$	553
INTEREST INCOME
SDG&E	$	4		$	—		$	—
SoCalGas	2			1			1
Sempra South American Utilities	31			28			21
Sempra Mexico	65			23			6
Sempra Renewables	12			7			5
Sempra LNG & Midstream	49			56			71
All other	14			—			—
Intercompany eliminations	(73		)	(69		)	(78		)
Total	$	104		$	46		$	26
DEPRECIATION AND AMORTIZATION
SDG&E	$	688		$	670		$	646
SoCalGas	556			515			476
Sempra South American Utilities	58			54			49
Sempra Mexico	175			156			77
Sempra Renewables	27			38			6
Sempra LNG & Midstream	26			42			47
All other	19			15			11
Total	$	1,549		$	1,490		$	1,312
INCOME TAX EXPENSE (BENEFIT)
SDG&E	$	173		$	155		$	280
SoCalGas	92			160			143
Sempra South American Utilities	95			80			80
Sempra Mexico	185			227			188
Sempra Renewables	71			(226		)	(38		)
Sempra LNG & Midstream	(435		)	(119		)	(80		)
All other	(85		)	999			(184		)
Total	$	96		$	1,276		$	389



SEGMENT INFORMATION (CONTINUED)
(Dollars in millions)
	Years ended December 31 or at December 31,
	2018			2017			2016
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES
SDG&E	$	669		$	407		$	570
SoCalGas⁽²⁾	400			396			349
Sempra Texas Utility	371			—			—
Sempra South American Utilities	199			186			156
Sempra Mexico	237			169			463
Sempra Renewables	328			252			55
Sempra LNG & Midstream	(617		)	150			(107		)
All other⁽²⁾	(663		)	(1,304		)	(116		)
Total	$	924		$	256		$	1,370
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT
SDG&E	$	1,542		$	1,555		$	1,399
SoCalGas	1,538			1,367			1,319
Sempra South American Utilities	240			244			194
Sempra Mexico	368			248			330
Sempra Renewables	51			497			835
Sempra LNG & Midstream	31			20			117
All other	14			18			20
Total	$	3,784		$	3,949		$	4,214
ASSETS
SDG&E	$	19,225		$	17,844		$	17,719
SoCalGas	15,389			14,159			13,424
Sempra Texas Utility	9,652			—			—
Sempra South American Utilities	4,107			4,060			3,591
Sempra Mexico	9,165			8,554			7,542
Sempra Renewables	2,549			2,898			3,644
Sempra LNG & Midstream	4,060			4,872			5,564
All other	731			915			475
Intersegment receivables	(4,240		)	(2,848		)	(4,173		)
Total	$	60,638		$	50,454		$	47,786
GEOGRAPHIC INFORMATION
Long-lived assets⁽³⁾:
United States	$	40,611		$	31,487		$	28,351
Mexico	5,800			5,363			4,814
South America	2,374			2,180			1,863
Total	$	48,785		$	39,030		$	35,028
Revenues⁽⁴⁾:
United States	$	8,840		$	8,547		$	8,004
South America	1,585			1,567			1,556
Mexico	1,262			1,093			623
Total	$	11,687		$	11,207		$	10,183


⁽¹⁾	Revenues for reportable segments include intersegment revenues of $4 million, $64 million, $114 million and $215 million for 2018, $7 million, $74 million, $103 million, and $266 million for 2017, and $6 million, $76 million, $102 million and $180 million for 2016 for SDG&E, SoCalGas, Sempra Mexico and Sempra LNG & Midstream, respectively.


⁽²⁾	After preferred dividends.


⁽³⁾	Includes net PP&E and investments.

⁽⁴⁾

Amounts are based on where the revenue originated, after intercompany eliminations.

ACQUISTION AND DIVESTITURE ACTIVITY - Sempra Mexico (Details)
bbl in Thousands, $ in Millions

3 Months Ended

12 Months Ended

Feb. 28, 2018

USD ($)

Nov. 15, 2017

USD ($)

Dec. 14, 2016

USD ($)

Oct. 13, 2016

USD ($)

Sep. 26, 2016

USD ($)

Dec. 31, 2018

USD ($)

Sep. 30, 2018

USD ($)

Jun. 30, 2018

USD ($)

Mar. 31, 2018

USD ($)

Dec. 31, 2017

USD ($)

Sep. 30, 2017

USD ($)

Jun. 30, 2017

USD ($)

Mar. 31, 2017

USD ($)

Dec. 31, 2018

USD ($)

Dec. 31, 2017

USD ($)

Dec. 31, 2016

USD ($)

Sep. 26, 2018

USD ($)

bbl

Nov. 14, 2017

Sep. 25, 2016

Business Acquisition [Line Items]

Issuances of common stock, net of $41 in offering costs in 2018

$ 2,272

$ 47

$ 51

Cash paid, net of cash and cash equivalents acquired

(9,776)

(147)

(1,342)

Revenues

$ 3,221

$ 2,940

$ 2,564

$ 2,962

$ 2,964

$ 2,679

$ 2,533

$ 3,031

11,687

11,207

^[1]

10,183

^[1]

Earnings attributable to common shares

864

$ 274

$ (561)

$ 347

(501)

$ 57

$ 259

$ 441

Restricted cash

$ 56

$ 76

$ 56

$ 76

Sempra Mexico [Member] | Trafigura Mexico, S.A. de C.V. Subsidiary [Member]

Business Acquisition [Line Items]

Maximum ownership percentage available

82.50%

Ownership percentage held by noncontrolling owners

49.00%

Terminal Services Agreement, percent of terminal capacity

50.00%

Terminal storage capacity | bbl

1,480

Acquired percentage interest

51.00%

Sempra Mexico [Member] | Fisterra Midstream Mexico [Member]

Business Acquisition [Line Items]

Commitment to invest

$ 130

Cash consideration (fair value of total consideration)

$ 5

Generating capacity (in mw) | MW

125

Power purchase agreement term

15 years

Sempra Mexico [Member] | Gasoductos De Chihuahua [Member]

Business Acquisition [Line Items]

Cash consideration (fair value of total consideration)

$ 1,144

Cash and cash equivalents

Other intangible assets

Sempra Mexico [Member] | Ventika Wind Power Generation Facilities [Member]

Business Acquisition [Line Items]

Cash consideration (fair value of total consideration)

$ 310

Cash and cash equivalents

Other intangible assets

$ 154

Minimum [Member] | Sempra Mexico [Member] | Trafigura Mexico, S.A. de C.V. Subsidiary [Member]

Business Acquisition [Line Items]

Commitment to invest

$ 102

Maximum [Member] | Sempra Mexico [Member] | Trafigura Mexico, S.A. de C.V. Subsidiary [Member]

Business Acquisition [Line Items]

Commitment to invest

$ 165

IEnova [Member]

Business Acquisition [Line Items]

Cash consideration (fair value of total consideration)

$ 351

IEnova [Member] | Ventika Wind Power Generation Facilities [Member]

Business Acquisition [Line Items]

Cash consideration (fair value of total consideration)

$ 50

IEnova [Member] | Sempra Mexico [Member]

Business Acquisition [Line Items]

Ownership percentage held by noncontrolling owners

33.50%

33.60%

33.50%

33.60%

IEnova [Member] | Sempra Mexico [Member] | Ductos Energéticos del Norte [Member]

Business Acquisition [Line Items]

Ownership percentage before acquisition

50.00%

Cash paid, net of cash and cash equivalents acquired

$ 165

Cash acquired from acquisition

Debt assumed

$ 96

Ownership percentage in consolidated entity

100.00%

Ownership percentage in equity method investee

50.00%

Other intangible assets

$ 66

Weighted average life of finite-lived intangible acquired

23 years

Acquired percentage interest

50.00%

IEnova [Member] | Sempra Mexico [Member] | Gasoductos De Chihuahua [Member]

Business Acquisition [Line Items]

Cash consideration (fair value of total consideration)

1,144

Cash and cash equivalents

Ownership percentage before acquisition

50.00%

Cash paid, net of cash and cash equivalents acquired

1,078

Debt assumed

$ 364

Ownership percentage in consolidated entity

100.00%

Proceeds from debt issued

$ 1,150

Gain on acquisition of remaining voting rights

617

Gain on acquisition of remaining voting rights, net of tax

432

Accrued Merger-related transaction costs

Revenues

Earnings attributable to common shares

Acquired percentage interest

50.00%

IEnova [Member] | Sempra Mexico [Member] | Ventika Wind Power Generation Facilities [Member]

Business Acquisition [Line Items]

Generating capacity (in mw) | MW

252

Power purchase agreement term

20 years

Issuances of common stock, net of $41 in offering costs in 2018

$ 50

Debt assumed

610

Proceeds from debt issued

$ 250

Accrued Merger-related transaction costs

Revenues

Earnings attributable to common shares

$ 3

Acquired percentage interest

100.00%

Consideration transferred

$ 310

Cash

Restricted cash

$ 68

Ramones Norte Pipeline [Member] | IEnova [Member] | Sempra Mexico [Member]

Business Acquisition [Line Items]

Ownership percentage in equity method investee

25.00%

Ramones Norte Pipeline [Member] | IEnova [Member] | Sempra Mexico [Member] | Ductos Energéticos del Norte [Member]

Business Acquisition [Line Items]

Ownership percentage before acquisition

50.00%

25.00%

Ownership percentage in consolidated entity

50.00%

Renewable energy and consumption permit [Member] | IEnova [Member] | Sempra Mexico [Member] | Ventika Wind Power Generation Facilities [Member]

Business Acquisition [Line Items]

Weighted average life of finite-lived intangible acquired

19 years

[1]	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1.

SEMPRA ENERGY - SHAREHOLDERS' EQUITY AND EARNINGS PER SHARE - EARNINGS PER SHARE COMPUTATIONS AND DIVIDENDS DECLARED (Details) - USD ($)
$ / shares in Units, $ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Earnings Per Share [Abstract]

Earnings attributable to common shares

$ 924

$ 256

^[1]

$ 1,370

^[1]

Weighted-average common shares outstanding for basic EPS (in shares)

274,300,000

273,900,000

265,800,000

257,900,000

251,900,000

251,700,000

251,400,000

251,100,000

268,072,000

251,545,000

^[1]

250,217,000

^[1]

Dilutive effect of stock options, restricted stock awards and restricted stock units (in shares)

919,000

755,000

938,000

Dilutive effect of common shares sold forward (in shares)

861,000

Weighted-average number of shares outstanding, diluted (in shares)

296,400,000

275,900,000

265,800,000

259,500,000

251,900,000

253,400,000

252,800,000

252,200,000

269,852,000

252,300,000

^[1]

251,155,000

^[1]

Basic earnings per common share (in dollars per share)

$ 3.51

$ 1.22

$ (1.99)

$ 1.39

$ (1.80)

$ 0.41

$ 0.99

$ 1.80

$ 3.45

$ 1.02

^[1]

$ 5.48

^[1]

Diluted earnings per common share (in dollars per share)

$ 3.25

$ 1.21

$ (1.99)

$ 1.38

$ (1.80)

$ 0.41

$ 0.98

$ 1.79

$ 3.42

$ 1.01

^[1]

$ 5.46

^[1]

Fully vested RSUs included in the computation of EPS

641

609

568

[1]	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1.

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

+ Details

SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT - CASH FLOWS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Condensed Cash Flow Statements, Captions [Line Items]
Net cash used in operating activities	$ 3,447	$ 3,625	$ 2,311
Expenditures for property, plant and equipment	(3,784)	(3,949)	(4,214)
Expenditures for acquisition	9,776	147	1,342
Net cash used in investing activities	(12,557)	(4,700)	(4,835)
Common stock dividends paid	(877)	(755)	(686)
Preferred dividends paid	(89)	0	0
Issuances of mandatory convertible preferred stock, net of $42 in offering costs in 2018	2,258	0	0
Issuances of common stock, net of $41 in offering costs in 2018	2,272	47	51
Repurchases of common stock	(21)	(15)	(56)
Issuances of long-term debt	9,174	4,509	2,951
Payments on long-term debt	(3,510)	(2,800)	(2,057)
Net cash provided by financing activities	9,006	1,007	2,502
Cash and cash equivalents, January 1	288
Cash and cash equivalents, December 31	190	288
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES
Accrued Merger-related transaction costs	0	31	0
Common dividends issued in stock	54	53	53
Parent Company [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash used in operating activities	213	89	(3)
Expenditures for property, plant and equipment	(11)	(11)	(5)
Expenditures for acquisition	(329)	0	0
Capital contributions to investees	(9,457)	0	0
Decrease (increase) in loans to affiliate, net	(1)	0	457
Expenditures for Merger-related costs	0	(12)	0
Net cash used in investing activities	(9,798)	(23)	452
Common stock dividends paid	(877)	(755)	(686)
Preferred dividends paid	(89)	0	0
Issuances of mandatory convertible preferred stock, net of $42 in offering costs in 2018	2,258	0	0
Issuances of common stock, net of $41 in offering costs in 2018	2,272	47	51
Repurchases of common stock	(21)	(15)	(56)
Issuances of long-term debt	4,969	1,595	499
Payments on long-term debt	(500)	(600)	(750)
Increase (decrease) in loans from affiliates, net	1,520	(239)	504
Payments of Debt Issuance Costs	(37)	(7)	(3)
Net cash provided by financing activities	9,495	26	(441)
Increase (decrease) in cash and cash equivalents	(90)	92	8
Cash and cash equivalents, January 1	104	12	4
Cash and cash equivalents, December 31	14	104	12
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES
Accrued Merger-related transaction costs	0	31	0
Preferred dividends declared but not paid	36	0	0
Common dividends issued in stock	54	53	53
Common dividends declared but not paid	245	$ 207	$ 189
Non-controlling interests [Member] \| Parent Company [Member]
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES
Offering costs from issuance of mandatory convertible preferred stock	42
Common Stock [Member] \| Parent Company [Member]
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES
Offering costs from issuance of common stock	$ 41

INVESTMENTS IN UNCONSOLIDATED ENTITIES - SUMMARIZED FINANCIAL INFORMATION (Details) - USD ($) $ in Millions			12 Months Ended
	Nov. 15, 2017	Sep. 26, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 13, 2018	Nov. 14, 2017	Sep. 25, 2016	May 31, 2016	May 09, 2016	Mar. 31, 2016	Mar. 29, 2016
Oncor Holdings Electric Delivery Company LLC [Member]
Schedule of Equity Method Investments [Line Items]
Gross revenue			$ 3,347
Operating expense			(2,434)
Income from operations			913
Interest expense			(285)
Income tax expense			(119)
Net income/earnings			455
Noncontrolling interest held by TTI			(94)
Earnings attributable to Sempra Energy			360
Current assets			772
Noncurrent assets			21,980
Current liabilities			2,217
Noncurrent liabilities			11,756
Other Equity Method Investments [Member]
Schedule of Equity Method Investments [Line Items]
Gross revenue			727	$ 846	$ 1,079
Operating expense			(614)	(590)	(726)
Income from operations			113	256	353
Interest expense			(330)	(217)	(127)
Net income/earnings			(33)	116	$ 252
Current assets			625	974
Noncurrent assets			14,803	14,087
Current liabilities			813	797
Noncurrent liabilities			$ 10,226	$ 9,809
Sempra LNG & Midstream [Member] \| Rockies Express [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage in equity method investee									25.00%	25.00%	25.00%	25.00%
Sempra Renewables [Member] \| Broken Bow 2 Wind [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage in equity method investee						50.00%
IEnova [Member] \| Ductos Energéticos del Norte [Member] \| Sempra Mexico [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage in equity method investee							50.00%
Ownership percentage before acquisition							50.00%
Acquired percentage interest	50.00%
Ownership percentage in consolidated entity	100.00%
IEnova [Member] \| IEnova Pipelines [Member] \| Sempra Mexico [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage before acquisition								50.00%
Acquired percentage interest		50.00%
Ownership percentage in consolidated entity		100.00%

REGULATORY MATTERS

12 Months Ended

Dec. 31, 2018

Regulated Operations [Abstract]

Regulatory Matters

REGULATORY MATTERS

REGULATORY ASSETS AND LIABILITIES

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



REGULATORY ASSETS (LIABILITIES)
(Dollars in millions)
	December 31,
	2018			2017
SDG&E:
Fixed-price contracts and other derivatives	$	(150	)	$	96
Deferred income taxes refundable in rates	(236		)	(281		)
Pension and other postretirement benefit plan obligations	186			153
Removal obligations	(1,848		)	(1,846		)
Unamortized loss on reacquired debt	7			9
Environmental costs	28			29
Sunrise Powerlink fire mitigation	120			119
Regulatory balancing accounts⁽¹⁾
Commodity – electric	(8		)	82
Gas transportation	45			22
Safety and reliability	70			48
Public purpose programs	(62		)	(70		)
Other balancing accounts	145			233
Other regulatory liabilities, net⁽²⁾	(177		)	(70		)
Total SDG&E	(1,880		)	(1,476		)
SoCalGas:
Pension and other postretirement benefit plan obligations	470			513
Employee benefit costs	49			45
Removal obligations	(833		)	(924		)
Deferred income taxes refundable in rates	(336		)	(437		)
Unamortized loss on reacquired debt	7			8
Environmental costs	28			22
Workers’ compensation	9			12
Regulatory balancing accounts⁽¹⁾
Commodity – gas, including transportation	196			151
Safety and reliability	332			266
Public purpose programs	(325		)	(274		)
Other balancing accounts	(68		)	(114		)
Other regulatory liabilities, net⁽²⁾	(130		)	(64		)
Total SoCalGas	(601		)	(796		)
Sempra Mexico:
Deferred income taxes recoverable in rates	81			83
Other regulatory assets	6			—
Total Sempra Energy Consolidated	$	(2,394	)	$	(2,189	)


⁽¹⁾	At December 31, 2018 and 2017, the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $78 million and $63 million, respectively. At December 31, 2018 and 2017, the noncurrent portion of regulatory balancing accounts – net undercollected for SoCalGas was $185 million and $118 million, respectively.


⁽²⁾	Includes regulatory assets earning a rate of return.

In the table above:

▪


▪	Regulatory assets/liabilities related to pension and other postretirement benefit plan obligations are offset by corresponding liabilities/assets and are being recovered in rates as the plans are funded.


▪	The regulatory asset related to employee benefit costs represents our liability associated with long-term disability insurance that will be recovered from customers in future rates as expenditures are made.


▪	Regulatory liabilities from removal obligations represent cumulative amounts collected in rates for future asset removal costs in excess of cumulative amounts incurred (or paid).


▪	Regulatory assets related to unamortized loss on reacquired debt are recovered over the remaining amortization periods of the losses on reacquired debt. These periods range from 1 year to 9 years for SDG&E and from 3 years to 7 years for SoCalGas.


▪	Regulatory assets related to environmental costs represent the portion of our environmental liability recognized at the end of the period in excess of the amount that has been recovered through rates charged to customers. We expect this amount to be recovered in future rates as expenditures are made. We discuss environmental issues further in Note 16.


▪	The regulatory asset related to Sunrise Powerlink fire mitigation is offset by a corresponding liability for the funding of a trust to cover the mitigation costs. SDG&E expects to recover the regulatory asset in rates as the trust is funded over a remaining 51-year period. We discuss the trust further in Note 16.


▪	The regulatory asset related to workers’ compensation represents accrued costs for future claims that will be recovered from customers in future rates as expenditures are made.

▪

CALIFORNIA UTILITIES

CPUC General Rate Case

2019 General Rate Case

The results of the rate case may materially and adversely differ from what is contained in the GRC applications.

We expect a preliminary decision from the CPUC in the first half of 2019.

Risk Assessment Mitigation Phase Reporting and Impact on the 2019 GRC Application Filings

2016 General Rate Case


▪	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.

CPUC Cost of Capital



AUTHORIZED COST OF CAPITAL AND RATE STRUCTURE – CPUC

SDG&E							SoCalGas
Authorized weighting		Return on rate base		Weighted return on rate base			Authorized weighting		Return on rate base		Weighted return on rate base
45.25	%	4.59	%	2.08	%	Long-Term Debt	45.60	%	4.33	%	1.97	%
2.75		6.22		0.17		Preferred Stock	2.40		6.00		0.14
52.00		10.20		5.30		Common Equity	52.00		10.05		5.23
100.00	%			7.55	%		100.00	%			7.34	%

The changes to the embedded cost of debt and return on rate base resulting from the updates included in the filed advice letters are summarized below:



CHANGES TO THE EMBEDDED COST OF DEBT

	SDG&E						SoCalGas
	Cost of debt			Return on rate base			Cost of debt			Return on rate base
Previously	5.00		%	7.79		%	5.77		%	8.02		%
Authorized, effective January 1, 2018	4.59		%	7.55		%	4.33		%	7.34		%
Differences	(41	)	bps	(24	)	bps	(144	)	bps	(68	)	bps

SDG&E

FERC Rate Matters and Cost of Capital

SDG&E files separately with the FERC for its authorized ROE on FERC-regulated electric transmission operations and assets.

SDG&E’s current estimated FERC return on rate base under the TO4 formula rate request filing is 7.51 percent based on its capital structure as follows:



SDG&E COST OF CAPITAL AND RATE STRUCTURE – FERC

	Weighting		Return on rate base		Weighted return on rate base
Long-Term Debt	43.44	%	4.21	%	1.83	%
Common Equity	56.56		10.05		5.68
	100.00	%			7.51	%

FERC Formulaic Rate Filing

SEMPRA SOUTH AMERICAN UTILITIES

SEMPRA MEXICO

SONGS STEAM GENERATOR REPLACEMENT PROJECT

SETTLEMENT AGREEMENT TO RESOLVE THE CPUC’S ORDER INSTITUTING INVESTIGATION INTO THE SONGS OUTAGE

In connection with the Revised Settlement Agreement, and in exchange for the release of certain SONGS-related claims, SDG&E and Edison entered into the Utility Shareholder Agreement, described below.

Disallowances, Refunds and Recoveries

Utility Shareholder Agreement

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 12.



NUCLEAR DECOMMISSIONING TRUSTS
(Dollars in millions)
	Cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
At December 31, 2018:
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies⁽¹⁾	$	52	$	1	$	—		$	53
Municipal bonds⁽²⁾	266		4		(1		)	269
Other securities⁽³⁾	238		1		(5		)	234
Total debt securities	556		6		(6		)	556
Equity securities	168		253		(10		)	411
Cash and cash equivalents	7		—		—			7
Total	$	731	$	259	$	(16	)	$	974
At December 31, 2017:
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	$	54	$	—	$	—		$	54
Municipal bonds	245		7		(2		)	250
Other securities	215		3		(1		)	217
Total debt securities	514		10		(3		)	521
Equity securities	171		326		(1		)	496
Cash and cash equivalents	16		—		—			16
Total	$	701	$	336	$	(4	)	$	1,033


⁽¹⁾	Maturity dates are 2019-2048.


⁽²⁾	Maturity dates are 2019-2056.


⁽³⁾	Maturity dates are 2019-2064.

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



SALES OF SECURITIES IN THE NDT
(Dollars in millions)
	Years ended December 31,
	2018			2017			2016
Proceeds from sales	$	890		$	1,314		$	1,134
Gross realized gains	42			157			111
Gross realized losses	(10		)	(14		)	(29		)

ASSET RETIREMENT OBLIGATION AND SPENT NUCLEAR FUEL

U.S. DEPARTMENT OF ENERGY NUCLEAR FUEL DISPOSAL

NUCLEAR INSURANCE

ACQUISTION AND DIVESTITURE ACTIVITY - Sempra Renewables (Details) - Sempra Renewables [Member] $ in Millions			3 Months Ended
	Jul. 10, 2017 USD ($)	Jul. 01, 2016 USD ($) MW	Dec. 31, 2016 USD ($)
Great Valley Solar [Member]
Business Acquisition [Line Items]
Cash consideration (fair value of total consideration)	$ 124
Huron County, Michigan [Member]
Business Acquisition [Line Items]
Cash consideration (fair value of total consideration)		$ 18	$ 4
Ownership percentage in consolidated entity		100.00%
Generating capacity (in mw) \| MW		100
Power purchase agreement term		15 years
Consideration transferred		$ 22

REGULATORY MATTERS - GENERAL RATE CASE (Details) - USD ($) $ in Millions		1 Months Ended		3 Months Ended	12 Months Ended
	Oct. 06, 2017	Apr. 30, 2018	Jun. 30, 2016	Jun. 30, 2016	Dec. 31, 2018
San Diego Gas and Electric Company [Member]
General Rate Case [Line Items]
GRC requested revenue requirement	$ 2,203				$ 1,918
GRC revenue requirement decrease		$ 64
GRC revenue requirement adjustment increase	221
Tax Cuts and Jobs Act, change in tax rate, change in revenue requirement		$ 58
General rate case, proposed annual attrition percent		4.00%
Adjustment to revenue related to tax repairs deductions, pre-tax				$ 52
Adjustment to revenue related to tax repairs deductions, net of tax				31
San Diego Gas and Electric Company [Member] \| Year 2016 [Member]
General Rate Case [Line Items]
GRC revenue requirement			$ 1,791
San Diego Gas and Electric Company [Member] \| General Rate Case [Member]
General Rate Case [Line Items]
Tracked income tax expense liability					89
San Diego Gas and Electric Company [Member] \| Future Refund of Rates to Customers [Member]
General Rate Case [Line Items]
Regulatory liability					75
San Diego Gas and Electric Company [Member] \| Future Refund of Rates to Customers - FERC [Member]
General Rate Case [Line Items]
Regulatory liability					67
Southern California Gas Company [Member]
General Rate Case [Line Items]
GRC requested revenue requirement	2,937				2,695
GRC revenue requirement decrease		$ 239
GRC revenue requirement adjustment increase	$ 481
Tax Cuts and Jobs Act, change in tax rate, change in revenue requirement		$ 58
Adjustment to revenue related to tax repairs deductions, pre-tax				83
Adjustment to revenue related to tax repairs deductions, net of tax				$ 49
Southern California Gas Company [Member] \| Year 2016 [Member]
General Rate Case [Line Items]
GRC revenue requirement			$ 2,204
Southern California Gas Company [Member] \| General Rate Case [Member]
General Rate Case [Line Items]
Tracked income tax expense liability					94
Southern California Gas Company [Member] \| Future Refund of Rates to Customers [Member]
General Rate Case [Line Items]
Regulatory liability					$ 68
Minimum [Member] \| San Diego Gas and Electric Company [Member]
General Rate Case [Line Items]
GRC requested revenue requirement adjustment percentage	5.00%
Minimum [Member] \| Southern California Gas Company [Member]
General Rate Case [Line Items]
GRC requested revenue requirement adjustment percentage	6.00%
General rate case, proposed annual attrition percent		4.00%
Maximum [Member] \| San Diego Gas and Electric Company [Member]
General Rate Case [Line Items]
GRC requested revenue requirement adjustment percentage	7.00%
Maximum [Member] \| Southern California Gas Company [Member]
General Rate Case [Line Items]
GRC requested revenue requirement adjustment percentage	8.00%
General rate case, proposed annual attrition percent		5.00%
Otay Mesa Energy Center [Member] \| San Diego Gas and Electric Company [Member]
General Rate Case [Line Items]
Operating expenses		$ 68

FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

RECURRING FAIR VALUE MEASURES

The three tables below, by level within the fair value hierarchy, set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis at December 31, 2018 and 2017. 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.

The fair value of commodity derivative assets and liabilities is presented in accordance with our netting policy, as we discuss in Note 11 in “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 in the tables below include the following (other than a $10 million investment at December 31, 2018 measured at NAV):

▪

Nuclear decommissioning trusts reflect the assets of SDG&E’s NDT, 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. 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 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 in “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 December 31, 2018 and 2017.



RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Fair value at December 31, 2018
	Level 1			Level 2		Level 3		Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	407		$	4	$	—	$	411
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	43			10		—		53
Municipal bonds	—			269		—		269
Other securities	—			234		—		234
Total debt securities	43			513		—		556
Total nuclear decommissioning trusts⁽¹⁾	450			517		—		967
Interest rate and foreign exchange instruments	—			2		—		2
Commodity contracts not subject to rate recovery	—			24		—		24
Effect of netting and allocation of collateral⁽²⁾	19			—		—		19
Commodity contracts subject to rate recovery	2			9		278		289
Effect of netting and allocation of collateral⁽²⁾	28			—		5		33
Total	$	499		$	552	$	283	$	1,334

Liabilities:
Interest rate and foreign exchange instruments	$	—		$	150	$	—	$	150
Commodity contracts not subject to rate recovery	—			34		—		34
Commodity contracts subject to rate recovery	2			5		99		106
Effect of netting and allocation of collateral⁽²⁾	(2		)	—		—		(2		)
Total	$	—		$	189	$	99	$	288

	Fair value at December 31, 2017
	Level 1			Level 2		Level 3		Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	491		$	5	$	—	$	496
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	45			9		—		54
Municipal bonds	—			250		—		250
Other securities	—			217		—		217
Total debt securities	45			476		—		521
Total nuclear decommissioning trusts⁽¹⁾	536			481		—		1,017
Interest rate and foreign exchange instruments	—			7		—		7
Commodity contracts not subject to rate recovery	5			12		—		17
Effect of netting and allocation of collateral⁽²⁾	2			—		—		2
Commodity contracts subject to rate recovery	—			2		126		128
Effect of netting and allocation of collateral⁽²⁾	12			—		5		17
Total	$	555		$	502	$	131	$	1,188

Liabilities:
Interest rate and foreign exchange instruments	$	—		$	217	$	—	$	217
Commodity contracts not subject to rate recovery	—			6		—		6
Commodity contracts subject to rate recovery	23			7		154		184
Effect of netting and allocation of collateral⁽²⁾	(23		)	—		—		(23		)
Total	$	—		$	230	$	154	$	384


⁽¹⁾	Excludes cash balances and cash equivalents.


⁽²⁾	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 – SDG&E
(Dollars in millions)
	Fair value at December 31, 2018
	Level 1			Level 2		Level 3		Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	407		$	4	$	—	$	411
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	43			10		—		53
Municipal bonds	—			269		—		269
Other securities	—			234		—		234
Total debt securities	43			513		—		556
Total nuclear decommissioning trusts⁽¹⁾	450			517		—		967
Commodity contracts subject to rate recovery	1			6		278		285
Effect of netting and allocation of collateral⁽²⁾	23			—		5		28
Total	$	474		$	523	$	283	$	1,280

Liabilities:
Interest rate instruments	$	—		$	1	$	—	$	1
Commodity contracts subject to rate recovery	2			—		99		101
Effect of netting and allocation of collateral⁽²⁾	(2		)	—		—		(2		)
Total	$	—		$	1	$	99	$	100

	Fair value at December 31, 2017
	Level 1			Level 2		Level 3		Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	491		$	5	$	—	$	496
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	45			9		—		54
Municipal bonds	—			250		—		250
Other securities	—			217		—		217
Total debt securities	45			476		—		521
Total nuclear decommissioning trusts⁽¹⁾	536			481		—		1,017
Commodity contracts subject to rate recovery	—			—		126		126
Effect of netting and allocation of collateral⁽²⁾	11			—		5		16
Total	$	547		$	481	$	131	$	1,159

Liabilities:
Interest rate instruments	$	—		$	13	$	—	$	13
Commodity contracts subject to rate recovery	23			5		154		182
Effect of netting and allocation of collateral⁽²⁾	(23		)	—		—		(23		)
Total	$	—		$	18	$	154	$	172


⁽¹⁾	Excludes cash balances and cash equivalents.


⁽²⁾	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 – SOCALGAS
(Dollars in millions)
	Fair value at December 31, 2018
	Level 1		Level 2		Level 3		Total
Assets:
Commodity contracts subject to rate recovery	$	1	$	3	$	—	$	4
Effect of netting and allocation of collateral⁽¹⁾	5		—		—		5
Total	$	6	$	3	$	—	$	9

Liabilities:
Commodity contracts subject to rate recovery	$	—	$	5	$	—	$	5
Total	$	—	$	5	$	—	$	5

	Fair value at December 31, 2017
	Level 1		Level 2		Level 3		Total
Assets:
Commodity contracts subject to rate recovery	$	—	$	2	$	—	$	2
Effect of netting and allocation of collateral⁽¹⁾	1		—		—		1
Total	$	1	$	2	$	—	$	3

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


⁽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 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⁽¹⁾
(Dollars in millions)
	Years ended December 31,
	2018			2017			2016
Balance at January 1	$	(28	)	$	(74	)	$	19
Realized and unrealized gains (losses)	209			34			(120		)
Allocated transmission instruments	10			6			8
Settlements	(12		)	6			19
Balance at December 31	$	179		$	(28	)	$	(74	)
Change in unrealized gains (losses) relating to
instruments still held at December 31	$	183		$	30		$	(101	)


⁽¹⁾	Excludes the effect of the contractual ability to settle contracts under master netting agreements.

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 ISO, an objective source. Annual auction prices are published once a year, typically in the middle of November, and are the basis for valuing CRRs settling in the following year. For the CRRs settling from January 1 to December 31, the auction price inputs, at a given location, were in the following ranges for the years indicated below:



CONGESTION REVENUE RIGHTS AUCTION PRICE INPUTS

Settlement year		Price per MWh						Median price per MWh
2019	$	(8.57	)	to	$	35.21	$	(2.94	)
2018		(7.25	)	to		11.99		0.09
2017		(11.88	)	to		6.93		(0.14	)

The impact associated with discounting is negligible. Because these 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. 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 11.

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. The range and weighted-average price of these inputs was as follows:



LONG-TERM, FIXED-PRICE ELECTRICITY POSITIONS PRICE INPUTS

Settlement year		Price per MWh					Weighted-average price per MWh
2018	$	22.20	to	$	76.85	$	42.69
2017		22.55	to		44.10		35.23

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 11.

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 Consolidated Statements of Operations. Unrealized gains and losses are recorded as regulatory assets and liabilities, and therefore do not affect earnings.

Fair Value of Financial Instruments

The fair values of certain of our financial instruments (cash, accounts and notes receivable, short-term 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 Consolidated Balance Sheets at December 31, 2018 and 2017:



FAIR VALUE OF FINANCIAL INSTRUMENTS
(Dollars in millions)
	December 31, 2018
	Carrying		Fair value
	amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Long-term amounts due from unconsolidated affiliates	$	688	$	—	$	648	$	47	$	695
Long-term amounts due to unconsolidated affiliates	37		—		35		—		35
Total long-term debt⁽¹⁾⁽²⁾	22,067		—		21,274		351		21,625
SDG&E:
Total long-term debt⁽²⁾⁽³⁾	$	4,996	$	—	$	4,897	$	220	$	5,117
SoCalGas:
Total long-term debt⁽⁴⁾	$	3,459	$	—	$	3,505	$	—	$	3,505

	December 31, 2017
	Carrying		Fair value
	amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Long-term amounts due from unconsolidated affiliates	$	598	$	—	$	510	$	108	$	618
Long-term amounts due to unconsolidated affiliates	35		—		32		—		32
Total long-term debt⁽¹⁾⁽²⁾	17,138		817		17,134		458		18,409
SDG&E:
Total long-term debt⁽²⁾⁽³⁾	$	4,868	$	—	$	5,073	$	295	$	5,368
SoCalGas:
Total long-term debt⁽⁴⁾	$	3,009	$	—	$	3,192	$	—	$	3,192


⁽¹⁾	Before reductions for unamortized discount (net of premium) and debt issuance costs of $202 million and $143 million at December 31, 2018 and 2017, respectively, and excluding build-to-suit and capital lease obligations of $1,419 million and $877 million at December 31, 2018 and 2017, respectively. We discuss our long-term debt in Note 7.


⁽²⁾	Level 3 instruments include $220 million and $295 million at December 31, 2018 and 2017, respectively, related to Otay Mesa VIE.


⁽³⁾	Before reductions for unamortized discount and debt issuance costs of $49 million and $45 million at December 31, 2018 and 2017, respectively, and excluding capital lease obligations of $1,272 million and $732 million at December 31, 2018 and 2017, respectively.


⁽⁴⁾	Before reductions for unamortized discount and debt issuance costs of $32 million and $24 million at December 31, 2018 and 2017, respectively, and excluding capital lease obligations of $3 million and $1 million at December 31, 2018 and 2017, respectively.

We provide the fair values for the securities held in the NDT funds related to SONGS in Note 15.

NON-RECURRING FAIR VALUE MEASURES

Sempra Mexico

TdM

In February 2016, management approved a plan to market and sell Sempra Mexico’s TdM natural gas-fired power plant, and classified it as held for sale on the Sempra Energy Consolidated Balance Sheet. 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 third quarter of 2016. In 2017, Sempra Mexico received a purchase price offer resulting from negotiations with an active market participant. This new market information indicated that the fair value of TdM was lower than its carrying value at June 30, 2017. As a result, in the second quarter of 2017, Sempra Mexico further reduced the carrying value of TdM by recognizing a noncash impairment charge of $71 million. Impairments recorded for TdM are included in Impairment Losses on Sempra Energy’s Consolidated Statements of Operations. Market values resulting from a third-party bidding process and a purchase price offer are considered to be Level 2 inputs in the fair value hierarchy, as they represent observable pricing inputs. TdM was reclassified to held and used in June 2018 when management terminated the sales process.

IEnova Pipelines

In September 2016, IEnova completed the acquisition of PEMEX’s 50-percent interest in IEnova Pipelines, increasing its ownership interest to 100 percent. As a result of IEnova obtaining control over IEnova Pipelines, in the year ended December 31, 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 IEnova Pipelines ($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 Consolidated Statement of Operations. The valuation technique used to measure the acquisition-date fair value of our equity interest in IEnova Pipelines 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 discuss the IEnova Pipelines acquisition in Note 5.

Sempra Renewables

U.S. Wind Investments

As we discuss in Notes 5 and 6, on June 25, 2018, our board of directors approved a plan to sell all our wind and solar equity method investments at Sempra Renewables. Because of our expectation of a shorter holding period as a result of this plan of sale, we evaluated the recoverability of the carrying amounts of each of these investments and concluded there is an other-than-temporary impairment on certain of our wind equity method investments totaling $200 million ($145 million after tax), which we recorded in Equity Earnings on Sempra Energy’s Consolidated Statement of Operations for the year ended December 31, 2018. We measured the estimated fair value of $145 million at June 25, 2018 using a discounted cash flow model including significant unobservable inputs, adjusted for our applicable ownership percentages, which is a Level 3 measurement in the fair value hierarchy. The key inputs to the methodology were contracted and merchant pricing, and the discount rate.

Sempra LNG & Midstream

Non-Utility Natural Gas Storage Assets

As we discuss in Note 5, on June 25, 2018, our board of directors approved a plan to sell Mississippi Hub, our 90.9-percent ownership interest in Bay Gas and other non-utility assets (the non-utility natural gas storage assets). We also own a 75.4-percent interest in LA Storage, a salt cavern development project in Cameron Parish, Louisiana. The LA Storage project also includes an existing 23.3-mile pipeline header system that is not currently contracted.

Because of the plan of sale, we considered a market participant’s view of the total value of the non-utility natural gas storage assets and determined that their fair value, less costs to sell, may be less than their carrying value. Additionally, our inability to secure customer contracts that would support further investment in LA Storage led us to assess and conclude that the full carrying value of these other U.S. midstream assets may not be recoverable. As a result, on June 25, 2018, we recorded an impairment of $1.3 billion ($755 million after tax and NCI) in Impairment Losses on Sempra Energy’s Consolidated Statement of Operations.

We measured the estimated fair value of $190 million at June 25, 2018 using a discounted cash flow approach. This approach included unobservable inputs, resulting in a Level 3 measurement in the fair value hierarchy. We considered a market participant’s view of the values of the non-utility natural gas storage assets based on an estimation of future net cash flows. To estimate future net cash flows, we considered the non-utility natural gas storage assets’ prospects for generating revenues and cash flows beyond their existing contracted capacity and tenors, including natural gas price volatility and seasonality factors, as well as discount rates commensurate with the risks inherent in the cash flows.

On January 1, 2019, Sempra LNG & Midstream entered into an agreement to sell Mississippi Hub and Bay Gas to an affiliate of ArcLight Capital Partners for $332 million, subject to working capital adjustments and $20 million representing Sempra LNG & Midstream’s purchase of the 9.1-percent minority interest in Bay Gas immediately prior to and included as part of the sale. On February 7, 2019, Sempra LNG & Midstream completed this sale. Additionally, in December 2018, Sempra LNG & Midstream entered into an agreement to sell other non-utility assets for $5 million; such sale was completed in January 2019. We considered the assets’ sales prices negotiated with active market participants to be a relevant and material data input. Accordingly, we updated our fair value analysis to reflect the Level 2 market participant input as the primary indicator of fair value. As a result, on December 31, 2018, we reduced the impairment of $1.3 billion recorded on June 25, 2018 by $183 million ($126 million after tax and NCI), resulting in a total impairment of $1.1 billion ($629 million after tax and NCI) for the year ended December 31, 2018, based on a fair value of $337 million for these non-utility natural gas storage assets.

Rockies Express

In March 2016, Sempra LNG & Midstream agreed to sell its 25-percent interest in Rockies Express for cash consideration of $440 million, subject to adjustment at closing. 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 on the Sempra Energy Consolidated Statement of Operations for the year ended December 31, 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. The sale was completed in May 2016.

The table below summarizes significant inputs impacting our non-recurring fair value measures. Additional discussions about the related transactions are provided in Note 5, and as applicable, in Note 6.

NON-RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED

Measurement date

Estimated

fair

value (in millions)

Valuation technique

Fair

value

hierarchy

% of

fair value

measurement

Inputs used to
develop
measurement

Range of
inputs (weighted average)

Non-utility natural gas storage assets

December 31, 2018

337

⁽¹⁾

Market approach

Level 2

100%

Assets’ sales prices

100%

Non-utility natural gas storage assets

June 25, 2018

190

⁽¹⁾⁽²⁾

Discounted cash flows

Level 3

100%

Storage rates
per Dth/month

$0.06 - $0.22 ($0.10)

⁽³⁾

Discount rate

10%

⁽⁴⁾

Certain of our U.S. wind equity method investments

June 25, 2018

145

⁽⁵⁾

Discounted cash flows

Level 3

100%

Contracted and observable merchant prices per MWh

$29 - $92

⁽³⁾

Discount rate

8% - 10% (8.7%)

⁽⁴⁾

TdM

June 30, 2017

Market approach

Level 2

100%

Purchase price offer

100%

TdM

September 29, 2016

145

Market approach

Level 2

100%

Purchase price offers

100%

Investment in

IEnova Pipelines

September 26, 2016

1,144

⁽⁶⁾

Market approach

Level 2

100%

Equity sale price

100%

Investment in
Rockies Express

March 29, 2016

440

Market approach

Level 2

100%

Equity sale price

100%


⁽¹⁾	Includes Mississippi Hub, Bay Gas and other non-utility assets, which are classified as held for sale at December 31, 2018 with a net carrying value of $323 million, reflecting estimated costs to sell.


⁽²⁾	Includes LA Storage, which continues to be classified as PP&E.


⁽³⁾	Generally, significant increases (decreases) in this input in isolation would result in a significantly higher (lower) fair value measurement.


⁽⁴⁾	An increase in the discount rate would result in a decrease in fair value.


⁽⁵⁾	At December 31, 2018, these U.S. wind equity method investments had a carrying value of $139 million, reflecting subsequent business activity.

⁽⁶⁾

Immediately prior to acquiring a 100-percent ownership interest in IEnova Pipelines.

- Definition

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

QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($)
$ / shares in Units, shares in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2018

Dec. 31, 2017

^[1]

Dec. 31, 2016

^[1]

Selected Quarterly Financial Information [Line Items]

Revenues

$ 3,221,000,000

$ 2,940,000,000

$ 2,564,000,000

$ 2,962,000,000

$ 2,964,000,000

$ 2,679,000,000

$ 2,533,000,000

$ 3,031,000,000

$ 11,687,000,000

$ 11,207,000,000

$ 10,183,000,000

Expenses and other income

2,160,000,000

2,513,000,000

3,673,000,000

2,295,000,000

2,567,000,000

2,674,000,000

2,136,000,000

2,279,000,000

Operating revenues

10,046,000,000

9,776,000,000

9,261,000,000

Net income

964,000,000

334,000,000

(530,000,000)

358,000,000

(451,000,000)

102,000,000

248,000,000

452,000,000

1,126,000,000

351,000,000

1,519,000,000

(Earnings) losses attributable to noncontrolling interest

(76,000,000)

(94,000,000)

(148,000,000)

Earnings attributable to common shares

$ 924,000,000

$ 256,000,000

$ 1,370,000,000

Earnings

$ 864,000,000

$ 274,000,000

$ (561,000,000)

$ 347,000,000

$ (501,000,000)

$ 57,000,000

$ 259,000,000

$ 441,000,000

Basic earnings per common share (in dollars per share)

$ 3.51

$ 1.22

$ (1.99)

$ 1.39

$ (1.80)

$ 0.41

$ 0.99

$ 1.80

$ 3.45

$ 1.02

$ 5.48

Basic earnings per common share attributable to Sempra Energy (in dollars per share)

$ 3.15

$ 1.00

$ (2.11)

$ 1.34

$ (1.99)

$ 0.23

$ 1.03

$ 1.76

Weighted-average number of shares outstanding, basic (in shares)

274,300

273,900

265,800

257,900

251,900

251,700

251,400

251,100

268,072

251,545

250,217

Diluted earnings per common share (in dollars per share)

$ 3.25

$ 1.21

$ (1.99)

$ 1.38

$ (1.80)

$ 0.41

$ 0.98

$ 1.79

$ 3.42

$ 1.01

$ 5.46

Diluted earnings per common share attributable to Sempra Energy (in dollars per share)

$ 3.03

$ 0.99

$ (2.11)

$ 1.33

$ (1.99)

$ 0.22

$ 1.03

$ 1.75

Weighted-average number of shares outstanding, diluted (in shares)

296,400

275,900

265,800

259,500

251,900

253,400

252,800

252,200

269,852

252,300

251,155

Dividends on preferred stock

$ (36,000,000)

$ (125,000,000)

$ 0

San Diego Gas and Electric Company [Member]

Selected Quarterly Financial Information [Line Items]

Operating revenues

1,163,000,000

$ 1,299,000,000

$ 1,051,000,000

$ 1,055,000,000

$ 1,125,000,000

$ 1,236,000,000

$ 1,058,000,000

$ 1,057,000,000

4,568,000,000

4,476,000,000

4,253,000,000

Operating expenses

916,000,000

999,000,000

836,000,000

807,000,000

869,000,000

1,294,000,000

821,000,000

783,000,000

3,558,000,000

3,767,000,000

3,277,000,000

Operating income

247,000,000

300,000,000

215,000,000

248,000,000

256,000,000

(58,000,000)

237,000,000

274,000,000

1,010,000,000

709,000,000

976,000,000

Net income

145,000,000

216,000,000

146,000,000

169,000,000

130,000,000

(19,000,000)

153,000,000

157,000,000

676,000,000

421,000,000

565,000,000

(Earnings) losses attributable to noncontrolling interest

3,000,000

(11,000,000)

1,000,000

(9,000,000)

(4,000,000)

(2,000,000)

(7,000,000)

(14,000,000)

5,000,000

Earnings attributable to common shares

148,000,000

205,000,000

146,000,000

170,000,000

131,000,000

(28,000,000)

149,000,000

155,000,000

669,000,000

407,000,000

570,000,000

Southern California Gas Company [Member]

Selected Quarterly Financial Information [Line Items]

Operating revenues

1,262,000,000

802,000,000

772,000,000

1,126,000,000

1,090,000,000

684,000,000

770,000,000

1,241,000,000

3,962,000,000

3,785,000,000

3,471,000,000

Operating expenses

1,023,000,000

797,000,000

703,000,000

848,000,000

860,000,000

679,000,000

690,000,000

929,000,000

3,371,000,000

3,158,000,000

2,920,000,000

Operating income

239,000,000

5,000,000

69,000,000

278,000,000

230,000,000

5,000,000

80,000,000

312,000,000

591,000,000

627,000,000

551,000,000

Net income

156,000,000

(14,000,000)

34,000,000

225,000,000

128,000,000

7,000,000

59,000,000

203,000,000

401,000,000

397,000,000

350,000,000

Earnings attributable to common shares

156,000,000

(14,000,000)

33,000,000

225,000,000

128,000,000

7,000,000

58,000,000

203,000,000

400,000,000

396,000,000

349,000,000

Dividends on preferred stock

$ 0

$ (1,000,000)

$ 0

$ (1,000,000)

$ 0

$ (1,000,000)

[1]	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1.

ACQUISTION AND DIVESTITURE ACTIVITY - DIVESTITURES (Details) - USD ($) $ in Millions			1 Months Ended			9 Months Ended	12 Months Ended
	Dec. 13, 2018	Sep. 12, 2016	Sep. 30, 2016	May 31, 2016	Mar. 31, 2016	Sep. 30, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	May 09, 2016	Mar. 29, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Goodwill							$ (2,373)	$ (2,397)	$ (2,364)
Current liabilities							25	49
Gain (loss) on deconsolidation	$ 367
Liabilities assumed							145	261	$ 1,322
Equity method investment							$ 9,652	$ 0
Disposal Group Disposed of by Sale [Member] \| Certain Subsidiaries Of Sempra Renewables [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale, net of transaction costs	1,585
Cash	(7)
Restricted cash	(7)
Other current assets	(14)
Property, plant and equipment, net	(1,303)
Other investments	(329)
Goodwill	0
Other noncurrent assets	(24)
Current liabilities	8
Long-term debt	70
Asset retirement obligations	52
Other noncurrent liabilities	5
Noncontrolling interests	486
Accumulated other comprehensive income	(9)
Gain on sale of equity interests	513
Proceeds from sale	$ 1,600
Disposal Group Disposed of by Sale [Member] \| Energy South [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale, net of transaction costs		$ 304
Cash		(2)
Restricted cash		0
Other current assets		(17)
Property, plant and equipment, net		(199)
Other investments		0
Goodwill		(72)
Other noncurrent assets		(65)
Current liabilities		25
Long-term debt		67
Asset retirement obligations		0
Other noncurrent liabilities		89
Noncontrolling interests		0
Accumulated other comprehensive income		0
Gain on sale of equity interests		130
Sempra LNG & Midstream [Member] \| Disposal Group Disposed of by Sale [Member] \| Energy South [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash		(2)
Gain on sale of equity interests			$ 130
Proceeds from sale		$ 318
Liabilities assumed			67
Gain on sale of assets, after tax			$ 78
Sempra LNG & Midstream [Member] \| Rockies Express [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Ownership percentage in equity method investee				25.00%	25.00%					25.00%	25.00%
Proceeds from sale of investments				$ 443	$ 440
Equity method investment					484
Fair value of investment					440
Other than temporary impairment in investment					44	$ 44
Other than temporary impairment in investment, net of tax					$ 27	$ 27

ACQUISTION AND DIVESTITURE ACTIVITY

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Acquistion and divestiture activity

ACQUISITION AND DIVESTITURE ACTIVITY

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 TEXAS UTILITY

After satisfying all conditions precedent, including final approval from the PUCT, on March 9, 2018, Sempra Energy completed the acquisition of an indirect, 100-percent interest in Oncor Holdings, which owned 80.03 percent of Oncor, and other EFH assets and liabilities unrelated to Oncor, pursuant to the Merger Agreement with EFH. Oncor is a regulated electric transmission and distribution business that operates the largest transmission and distribution system in Texas. This acquisition expanded our regulated earnings base, and may serve as a platform for future growth in the Texas energy market.

Under the Merger Agreement, we paid Merger Consideration of $9.45 billion in cash and an additional $31 million representing an adjustment for dividends and payments pursuant to a tax sharing agreement with Oncor and Oncor Holdings. Also on March 9, 2018, in a separate transaction, Sempra Energy, through its interest in Oncor Holdings, acquired an additional 0.22 percent of the outstanding membership interests in Oncor from OMI for approximately $26 million in cash, bringing Sempra Energy’s indirect ownership in Oncor to 80.25 percent. TTI, an investment vehicle indirectly owned by third parties unaffiliated with Oncor Holdings or Sempra Energy, continues to own 19.75 percent of Oncor’s outstanding membership interests.

Pursuant to the Merger Agreement, the reorganized EFH (renamed Sempra Texas Holdings Corp.) merged with an indirect subsidiary of Sempra Energy, with Sempra Texas Holdings Corp. continuing as the surviving company and an indirect, wholly owned subsidiary of Sempra Energy. Sempra Texas Holdings Corp. wholly owns EFIH (renamed Sempra Texas Intermediate Holding Company LLC), which holds our 100-percent interest in Oncor Holdings. Sempra Texas Intermediate Holding Company LLC is included in our newly formed Sempra Texas Utility reportable segment. Other assets and liabilities unrelated to Oncor that were acquired with Sempra Texas Holdings Corp. have been subsumed into our parent organization, Parent and other.

Due to ring-fencing measures, existing governance mechanisms and commitments in effect following the Merger, we do not have the power to direct the significant activities of Oncor Holdings and Oncor. Consequently, we account for our 100-percent ownership interest in Oncor Holdings as an equity method investment. See Note 6 for additional information about our equity method investment in Oncor Holdings and related ring-fencing measures.

The Sempra Texas Utility reportable segment comprises:

https://cdn.kscope.io/8d940908112aee1436dabfc1ef127649-texasutilitypic.jpg



The foregoing is a simplified ownership structure that does not show all the subsidiaries of, or other equity interests owned by, these entities.

In anticipation of the Merger, in January 2018, we completed registered public offerings of our common stock (including shares offered pursuant to forward sale agreements), series A preferred stock and long-term debt, as we discuss in Notes 7, 13 and 14. These offerings provided total initial net proceeds of approximately $7.0 billion for partial funding of the Merger Consideration, of which approximately $800 million was used to pay down commercial paper, pending the closing of the Merger.

On March 8, 2018, to fund a portion of the Merger Consideration, we settled approximately $900 million (net of underwriting discounts of $16 million) of forward sales under the forward sale agreements entered into in connection with the public offering of common stock in January 2018 by delivery of 8,556,630 shares of newly issued Sempra Energy common stock, as we discuss in Note 14. We raised the remaining portion of the Merger Consideration through issuances of approximately $2.6 billion in commercial paper with a weighted-average maturity of 47 days and a weighted-average interest rate of 2.2 percent per annum.

The total purchase price paid was comprised of the following:


•	$9,450 million of Merger Consideration;


•	$31 million adjustment for dividends and payments pursuant to a tax sharing agreement with Oncor and Oncor Holdings;


•	$26 million paid in a separate transaction to acquire an additional 0.22 percent of the outstanding membership interests in Oncor from OMI; and


•	$59 million of transaction costs included in the basis of our investment in Oncor Holdings.

We accounted for the Merger as an asset acquisition, as the equity method investment in Oncor Holdings represents substantially all of the fair value of the gross assets acquired. The following table sets forth the allocation of the total purchase price paid to the identifiable assets acquired and liabilities assumed.



PURCHASE PRICE ALLOCATION
(Dollars in millions)
	At March 9, 2018⁽¹⁾
Assets acquired:
Accounts receivable – other, net	$	1
Due from unconsolidated affiliates	46
Investment in Oncor Holdings	9,227
Deferred income tax assets	287
Other noncurrent assets	109
Total assets acquired	9,670

Liabilities assumed:
Other current liabilities	23
Pension and other postretirement benefit plan obligations	21
Deferred credits and other	58
Total liabilities assumed	102
Net assets acquired	$	9,568
Total purchase price paid	$	9,568


⁽¹⁾	In the fourth quarter of 2018, we received additional information regarding deferred income taxes related to

the resolution of claims in EFH’s emergence from bankruptcy as of the acquisition date. As a result, we

recorded an adjustment to increase our investment in Oncor Holdings by $64 million, decrease deferred

income tax assets by $66 million and decrease deferred credits and other liabilities by $2 million. Also

in the fourth quarter of 2018, we recorded $2 million of additional purchase price paid related to additional

transaction costs.

The fair value of the equity method investment in Oncor Holdings is primarily attributable to Oncor’s business. Therefore, we considered the underlying assets and liabilities of Oncor when determining the fair value of our equity method investment. As a regulated entity, Oncor’s rates are set and approved by the PUCT, and are designed to recover the cost of providing service and the opportunity to earn a reasonable return on its investments. Accordingly, Oncor applies the guidance under the provisions of U.S. GAAP governing rate-regulated operations. Under U.S. GAAP, regulation is viewed as being a characteristic (restriction) of a regulated entity’s assets and liabilities, and the impact of regulation is considered a fundamental input to measuring the fair value of Oncor’s assets and liabilities. Under this premise, we concluded that the carrying values of all assets and liabilities recoverable through rates are representative of their fair values.

SEMPRA SOUTH AMERICAN UTILITIES

Compañía Transmisora del Norte Grande S.A.

Background and Financing. On December 18, 2018, Chilquinta Energía acquired a 100-percent interest in CTNG through a sales and purchase agreement with AES Gener S.A. and its subsidiary Sociedad Eléctrica Angamos S.A. CTNG owns regulated transmission assets in the Valparaiso, Metropolitana and Antofagasta regions of Chile. The fully operating transmission assets include a 114-mile, 110-kV single-circuit transmission line, an 82-mile, 220-kV double-circuit transmission line, substations and other transmission assets. CTNG’s regulated revenues are based on tariffs that are set by the CNE and are reviewed by the CNE every four years. This business acquisition aligns with Chilquinta Energía’s business model of owning and operating regulated transmission and distribution assets. We completed the acquisition for a purchase price of $226 million. We paid the purchase price of $208 million (net of $18 million cash acquired) with available cash on hand at Sempra South American Utilities.

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 their respective fair values, with any excess recognized as goodwill at the Sempra South American Utilities reportable segment. None of the goodwill is expected to be deductible in Chile or in the U.S. for income tax purposes.

The following table summarizes the fair value of the CTNG business combination and the preliminary purchase price allocation of the assets acquired and liabilities assumed at the date of acquisition:



PRELIMINARY PURCHASE PRICE ALLOCATION
(Dollars in millions)
	At December 18, 2018
Assets acquired:
Cash and cash equivalents	$	18
Other assets	5
Other intangible assets	46
Property, plant and equipment	162
Total assets acquired	231

Liabilities assumed:
Other current liabilities	1
Deferred income taxes	42
Total liabilities assumed	43
Total identifiable net assets acquired	188
Goodwill	38
Total purchase price paid	$	226

At December 31, 2018, the purchase price allocation was preliminary and subject to completion. Adjustments to the current fair value estimates in the above table may occur as the process conducted for various valuations and assessments is finalized, primarily related to deferred income taxes. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed with a corresponding offset to goodwill.

Valuation of CTNG’s Assets and Liabilities. The fair values of the tangible and intangible assets acquired and liabilities assumed were recognized based on their preliminary values at the acquisition date. Significant inputs used to measure the fair values of the acquired PP&E and intangible assets are as follows:


▪	PP&E - We applied an income approach using market-based discounted cash flows. We used discounted free cash flows on revenues established by the most recent regulatory rate case, which was determined to reflect the fair value of PP&E.

▪

Intangible assets - CTNG holds concession permits that allow it to operate transmission lines and substations into perpetuity. We applied an income approach using market-based discounted cash flows. To estimate the fair value of the concession permits, we estimated the fair value of each transmission line and substation business enterprise assuming that they will operate into perpetuity. We then subtracted the corresponding fair value of the PP&E from each transmission line and substation business enterprise value to estimate the value attributable to the concession permits.

Additionally, we recognized deferred income taxes on CTNG’s existing NOLs and for the difference between fair values and tax bases of the net assets acquired using the Chilean statutory tax rate.

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

Impact on Operating Results. We incurred negligible acquisition costs in the year ended December 31, 2018, which are included in O&M on the Sempra Energy Consolidated Statement of Operations.

For the year ended December 31, 2018, the Sempra Energy Consolidated Statement of Operations includes $1 million of revenues and negligible earnings from CTNG since the December 18, 2018 date of acquisition.

Unaudited Pro Forma Information



UNAUDITED PRO FORMA INFORMATION – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Years ended December 31,
	2018		2017
Total revenues	$	11,703	$	11,224
Net income	1,130		356
Earnings attributable to common shares	928		261

The unaudited pro forma information above assumes the loss of interest income on cash on hand used to fund the acquisition in all periods presented. Also, as a result of discrete historical financial information not being available for 2017, CTNG’s income statement for 2017 was estimated using the 2018 income statement, primarily adjusted for expected changes in inflation and regulatory rates.

SEMPRA MEXICO

2018 Acquisitions

Trafigura Mexico, S.A. de C.V.

On September 26, 2018, Sempra Mexico acquired a 51-percent interest (with an option to increase its ownership interest to 82.5 percent) in a subsidiary of Trafigura Mexico, S.A. de C.V. that owns certain permits and land where the Manzanillo Terminal will be built. We consolidate this subsidiary and report NCI for the 49-percent ownership interest held by Trafigura Mexico, S.A. de C.V. IEnova intends to invest $102 million to $165 million (depending on ownership interest) to develop, construct and operate the Manzanillo Terminal, a marine terminal for the receipt, storage and delivery of refined products located in Colima, Mexico. IEnova and Trafigura Mexico, S.A. de C.V. also entered into a long-term, U.S. dollar-denominated terminal services agreement for 50 percent of the terminal’s initial storage capacity of 1.48 million barrels. We expect operations to commence in the fourth quarter of 2020.

Don Diego Solar Netherlands B.V. (formerly known as Fisterra Energy Netherlands II, B.V.)

On February 28, 2018, Sempra Mexico completed the asset acquisition of Don Diego Solar Netherlands B.V., for a purchase price of $5 million. Substantially all of the fair value of the gross assets acquired is attributable to a self-supply permit that allows generators to compete directly with the CFE’s retail tariffs and, thus, have access to PPAs with a competitive pricing position. IEnova intends to invest $130 million to develop, construct and operate the Don Diego Solar Complex, a 125-MW solar facility in Sonora, Mexico. IEnova entered into a 15-year, U.S. dollar-denominated PPA with various subsidiaries of El Puerto de Liverpool, S.A.B. de C.V., for a portion of the capacity. We expect operations to commence in the second half of 2019.

2017 Acquisition

Ductos y Energéticos del Norte, S. de R.L. de C.V.

On November 15, 2017, IEnova completed the asset acquisition of PEMEX’s 50-percent interest in DEN, a JV that holds a 50-percent interest in the Los Ramones Norte pipeline through TAG, for a purchase price of $165 million (exclusive of $18 million of cash and cash equivalents acquired), plus the assumption of $96 million of short-term debt. This acquisition increased IEnova’s ownership interest in DEN through IEnova Pipelines from 50 percent to 100 percent, and increased IEnova’s indirect ownership interest in TAG from 25 percent to 50 percent. IEnova Pipelines previously accounted for its 50-percent interest in DEN as an equity method investment. At closing, DEN became a wholly owned, consolidated subsidiary of IEnova Pipelines. DEN will continue to account for its interest in TAG as an equity method investment. This acquisition also included a $66 million intangible asset that represents a favorable O&M agreement, which has an amortization period of 23 years.

2016 Acquisitions



PURCHASE PRICE ALLOCATIONS
(Dollars in millions)
	IEnova Pipelines		Ventika
	At September 26, 2016⁽¹⁾		At December 14, 2016⁽²⁾
Fair value of business combination:
Cash consideration (fair value of total consideration)	$	1,144	$	310
Fair value of equity interest in IEnova Pipelines immediately prior to acquisition	1,144		—
Total fair value of business combination	$	2,288	$	310

Assets acquired:
Cash and cash equivalents	$	66	$	—
Restricted cash	—		68
Accounts receivable	39		14
Other current assets	6		1
Other intangible assets	—		154
Deferred income taxes	—		36
Regulatory assets	33		—
Property, plant and equipment	1,248		673
Other noncurrent assets	1		3
Total assets acquired	1,393		949

Liabilities assumed:
Short-term debt	—		125
Accounts payable	11		1
Due to unconsolidated affiliates	3		—
Current portion of long-term debt	49		7
Fixed-price contracts and other derivatives, current	6		4
Other current liabilities	20		8
Long-term debt	315		478
Asset retirement obligations	5		2
Deferred income taxes	127		120
Fixed-price contracts and other derivatives, noncurrent	19		10
Other noncurrent liabilities	11		—
Total liabilities assumed	566		755
Total identifiable net assets acquired	827		194
Goodwill	1,461		116
Total fair value of business combination	$	2,288	$	310

⁽¹⁾


⁽²⁾	During the fourth quarter of 2017, we received additional information regarding Ventika’s deferred income taxes as of the acquisition date, primarily related to net operating loss carryforwards. As a result, we recorded a measurement period adjustment that resulted in a decrease to goodwill and an increase in deferred income tax assets of $13 million.

IEnova Pipelines, S. de R.L. de C.V. (formerly known as Gasoductos de Chihuahua, S. de R.L. de C.V., or GdC)

Background and Financing. On September 26, 2016, IEnova completed the acquisition of PEMEX’s 50-percent interest in IEnova Pipelines, which develops and operates energy infrastructure in Mexico, 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 IEnova Pipelines to 100 percent. IEnova Pipelines became a consolidated subsidiary of IEnova on this date. Prior to the acquisition date, IEnova owned 50 percent of IEnova Pipelines and accounted for its interest as an equity method investment.

The assets involved in the acquisition included three natural gas pipelines, an ethane pipeline, and a liquid petroleum gas pipeline and associated storage terminal. The transaction excluded the Los Ramones Norte pipeline, in which IEnova continued to hold an indirect 25-percent ownership interest through IEnova Pipelines’ interest in DEN until November 2017, as we discuss above.

IEnova 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 $1.15 billion bridge loan to IEnova. Sempra Global funded the majority of the transaction using commercial paper borrowings. As we discuss in Note 1, in October 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. IEnova used a portion of the net proceeds from the offerings to fully repay the Sempra Global bridge loan.

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 their respective fair values, with any excess recognized as goodwill at the Sempra Mexico reportable segment. None of the goodwill is expected to be deductible in Mexico or the U.S. for income tax purposes.

Gain on Remeasurement of Equity Method Investment. In the year ended December 31, 2016, we recorded 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 IEnova Pipelines over the carrying value of that interest, included as Remeasurement of Equity Method Investment on the Sempra Energy Consolidated Statement of Operations. We used a market approach to measure the acquisition-date fair value of IEnova’s equity interest in IEnova Pipelines immediately prior to the business acquisition. We discuss non-recurring fair value measures and the associated accounting impact of the IEnova Pipelines acquisition in Note 12.

Valuation of IEnova Pipelines’ Assets and Liabilities. Based on the nature of the Mexico regulatory environment and the oversight surrounding the establishment and maintenance of rates that IEnova Pipelines charges for services on its assets, IEnova Pipelines 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 IEnova Pipelines’ 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.

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 concluded that the carrying value of IEnova Pipelines’ 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, we determined that historical carrying value approximates fair value due to their short-term nature.

Impact on Operating Results. We incurred acquisition costs of $4 million for the year ended December 31, 2016, which are included in O&M on the Sempra Energy Consolidated Statement of Operations.

For the year ended December 31, 2016, the Sempra Energy Consolidated Statement of Operations includes $82 million of revenues and $33 million of earnings (after NCI) from IEnova Pipelines since the September 26, 2016 date of acquisition.

Ventika, S.A.P.I. de C.V. and Ventika II, S.A.P.I. de C.V.

Background and Financing. On December 14, 2016, IEnova acquired 100 percent of the equity interests in the Ventika wind power generation facilities for cash consideration of $310 million and the assumption of $610 million of existing debt. Ventika is a 252-MW wind farm located in Nuevo Leon, Mexico, that began commercial operations in April 2016. All of Ventika’s generation capacity is contracted under 20-year, U.S. dollar-denominated PPAs with five private off-takers. The acquisition was funded using $50 million of net proceeds from the IEnova equity offerings that we discuss in Note 1, $250 million of borrowings against Sempra Mexico’s revolving credit facility, and $10 million of available cash at IEnova. The acquisition also included $68 million of restricted cash that represents funds set aside for servicing debt, operations and other costs pursuant to the long-term debt agreements.

fair values, with any excess recognized as goodwill at the Sempra Mexico reportable segment. None of the goodwill is expected to be deductible in Mexico or in the U.S. for income tax purposes.

Valuation of Ventika’s Assets and Liabilities. The fair values of the tangible and intangible assets acquired and liabilities assumed were recognized based on their preliminary values at the acquisition date. Significant inputs used to measure the fair values of the acquired PP&E, intangible asset, debt and derivatives are as follows:


▪	PP&E – We applied an income approach using market-based discounted cash flows. We used the pricing included in the existing PPAs, which was determined to reflect current market rates in the Mexican renewable energy market.

▪

Intangible asset – Ventika is the holder of a renewable energy transmission and consumption permit that allows it to transmit its generated power to various locations within Mexico at beneficial rates and reduces the administrative burden to manage transmitting power to off-takers. With recent renewable energy market reforms in Mexico, these transmission and consumption permits are no longer available, resulting in higher tariffs for generators. We applied an income approach based on a cash flow differential approach that measures the fair value of the transmission rights by comparing the operating expenses under the transmission and consumption permit as compared to under the new, higher tariffs. This acquired intangible asset has an amortization period of 19 years, reflecting the remaining life of the transmission and consumption transmission permit at the time of acquisition.


▪	Debt – Using an income approach, we valued debt by discounting future debt payments by a market yield commensurate with the remaining term of the loans.


▪	Derivatives – Using an income approach, we valued derivatives by discounting the future interest payments under the fixed and floating rates using current market data.

Additionally, we recognized deferred income taxes on Ventika’s existing NOLs and the difference between the fair values and tax bases of the net assets acquired using the Mexican statutory rate.

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

Impact on Operating Results. We incurred acquisition costs of $1 million in the year ended December 31, 2016, which are included in O&M on the Sempra Energy Consolidated Statement of Operations.

For the year ended December 31, 2016, the Sempra Energy Consolidated Statement of Operations includes $4 million of revenues and $3 million of earnings (after NCI) from Ventika since the December 14, 2016 date of acquisition.

SEMPRA RENEWABLES

On July 10, 2017, Sempra Renewables paid $124 million in cash for an asset acquisition of a portfolio of four solar projects located in Fresno County, California, that were under construction. Completed in 2018, the facilities were sold to a subsidiary of Con Ed in December 2018, as we discuss below.

In July 2016, Sempra Renewables acquired a 100-percent interest in a 100-MW wind farm in Huron County, Michigan, with a 15-year PPA, for a total purchase price of $22 million. Sempra Renewables paid $18 million in cash on the acquisition date and paid the remaining $4 million in cash on achievement of certain construction milestones in the fourth quarter of 2016. We placed this wind farm into service in November 2017. This facility is currently included in a plan of sale that we discuss below.

PENDING ACQUISITION

SEMPRA ENERGY

Sempra Texas Utility

On October 18, 2018, Oncor entered into the InfraREIT Merger Agreement, whereby Oncor has agreed to acquire 100 percent of the issued and outstanding shares of InfraREIT and 100 percent of the limited partnership units of its subsidiary, InfraREIT Partners, for approximately $1,275 million, or $21 per share and unit, plus approximately $40 million for a management agreement termination fee, as well as other customary transaction costs incurred by InfraREIT that would be borne by Oncor as part of the acquisition. In addition, the transaction includes InfraREIT’s outstanding debt, which as of September 30, 2018 was approximately $945 million. Consummation of the InfraREIT Merger Agreement is subject to the satisfaction of certain closing conditions, including the substantially concurrent consummation of the transactions contemplated by the Asset Exchange Agreement and Securities Purchase Agreement, discussed below.

On October 18, 2018, Oncor entered into the Asset Exchange Agreement, whereby SDTS has agreed to accept and assume certain assets and liabilities of SU in exchange for certain SDTS assets. As currently contemplated, SDTS would receive certain real property and other assets used in the electric transmission and distribution business in Central, North and West Texas, as well as the equity interests in GS Project Entity, LLC (a wholly owned subsidiary of SU) and SU would receive certain real property and other assets that are near the Texas-Mexico border. Immediately prior to completing the exchange, SDTS would become a wholly owned, indirect subsidiary of InfraREIT Partners. Consummation of the Asset Exchange Agreement is subject to the satisfaction of certain closing conditions, including the substantially concurrent consummation of the transactions contemplated by the Securities Purchase Agreement, discussed below.

On October 18, 2018, Sempra Energy entered into the Securities Purchase Agreement, whereby Sempra Texas Utilities Holdings I, LLC (a wholly owned subsidiary of Sempra Energy in our Sempra Texas Utility reportable segment) has agreed to acquire a 50-percent economic interest in Sharyland Holdings, LP for approximately $98 million, subject to customary closing adjustments. In connection with and prior to the consummation of the Securities Purchase Agreement, Sharyland Holdings, LP would own 100- percent of the membership interests in SU and SU would convert into a limited liability company, which is expected to be named Sharyland Utilities, LLC. Upon consummation of the Securities Purchase Agreement, Sempra Texas Utilities Holdings I, LLC would indirectly own and account for its 50-percent membership interest in Sharyland Utilities, LLC as an equity method investment. Consummation of the Securities Purchase Agreement is subject to the satisfaction of certain closing conditions, including the substantially concurrent consummation of the transactions contemplated by the InfraREIT Merger Agreement and the Asset Exchange Agreement.

For Oncor to fund its acquisition of interests in InfraREIT, Sempra Energy and certain indirect equity holders of TTI have committed to make capital contributions proportionate to Sempra Energy’s and TTI’s respective ownership interests in Oncor, with the amount estimated to be contributed by Sempra Energy equal to approximately $1,025 million, excluding Sempra Energy’s share of the approximately $40 million for a management agreement termination fee, as well as other customary transaction costs incurred by InfraREIT that would be borne by Oncor as part of the acquisition. We expect to fund our capital contribution to Oncor and to purchase the 50-percent limited-partner interest in Sharyland Holdings, LP by utilizing a portion of the $1.6 billion in proceeds received from the sale of certain of our non-utility U.S. renewables business to a subsidiary of Con Ed, which we discuss below. The capital contributions are contingent on the satisfaction of customary conditions, including the substantially simultaneous closing of the transactions contemplated by the InfraREIT Merger Agreement, but are not a condition to the transactions contemplated therein.

The transactions contemplated by the agreements discussed above require approval by the PUCT and the FERC, as well as the satisfaction of other regulatory requirements, approval by the Committee on Foreign Investment in the United States, certain lender consents and other customary closing conditions. Early termination of the applicable 30-day waiting period required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, was granted on December 14, 2018. In addition, the acquisition of InfraREIT was approved by the InfraREIT stockholders on February 7, 2019. We expect that the transactions will close in mid-2019.

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 SOUTH AMERICAN UTILITIES

On January 25, 2019, our board of directors approved a plan to sell our South American businesses and we classified these businesses as held for sale. We expect to complete the sales process by the end of 2019.

SEMPRA MEXICO

Termoeléctrica de Mexicali

In February 2016, management approved a plan to market and sell Sempra Mexico’s 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 late September 2016 and early July 2017, Sempra Mexico received market information indicating that the fair value of TdM was less than its carrying value. After performing analysis of the information, Sempra Mexico reduced the carrying value of TdM by recognizing noncash impairment charges of $131 million ($111 million after-tax)

in the third quarter of 2016 and $71 million in the second quarter of 2017, recorded in Impairment Losses on Sempra Energy’s Consolidated Statements of Operations. We discuss non-recurring fair value measures and the associated accounting impact on TdM in Note 12.

In connection with TdM’s classification as held for sale, we recognized an $8 million income tax benefit in 2017 and an $8 million income tax expense in 2016 for a deferred Mexican income tax liability related to the excess of carrying value over the tax basis.

On June 1, 2018, management terminated its sales process for TdM due to evolving strategic considerations for projects under development at IEnova. As a result, the assets and liabilities previously classified as held for sale were reclassified as held and used, and depreciation resumed. We reclassified the property, plant and equipment at its carrying value (which approximated fair value) at the date of the subsequent decision not to sell.

PLANNED SALE OF U.S. RENEWABLES AND NATURAL GAS STORAGE ASSETS

On June 25, 2018, our board of directors approved a plan to divest certain non-utility natural gas storage assets in the southeast U.S., and all our U.S. wind and U.S. solar assets (collectively, the Assets). The plan to sell the Assets resulted from the most recent comprehensive strategic portfolio review by the board of directors and management. As a result of our plan to sell the Assets, we recorded impairment charges totaling $1.5 billion ($900 million after tax and NCI) in June 2018. These charges included $1.3 billion ($755 million after tax and NCI) at Sempra LNG & Midstream, which are included in Impairment Losses on Sempra Energy’s Consolidated Statement of Operations, and $200 million ($145 million after tax) at Sempra Renewables, which is included in Equity Earnings on Sempra Energy’s Consolidated Statement of Operations. In December 2018, we reduced the impairment of $1.3 billion recorded at Sempra LNG & Midstream in June 2018 by $183 million ($126 million after tax and NCI) as a result of the sales agreement for certain storage assets described below, resulting in a total impairment charge of $1.1 billion ($629 million after tax and NCI) for the year ended December 31, 2018. These impairment charges primarily represent an adjustment of the related assets’ carrying values to estimated fair values, less costs to sell when applicable, which we discuss further in Notes 6 and 12.

Sempra Renewables

In December 2018, Sempra Renewables completed the sale of all its operating solar assets, its solar and battery storage development projects and one wind generation facility, as we describe below in “Divestitures.” In February 2019, Sempra Renewables entered into an agreement with American Electric Power to sell its remaining wind assets and investments for $551 million, subject to working capital adjustments and customary closing conditions. We expect to complete the sale in the second quarter of 2019.

Sempra LNG & Midstream

On February 7, 2019, Sempra LNG & Midstream completed the sale of its non-utility natural gas storage assets in the southeast U.S. (comprised of Mississippi Hub and Bay Gas) to an affiliate of ArcLight Capital Partners. Sempra LNG & Midstream received cash proceeds of $328 million (subject to working capital adjustments and Sempra LNG & Midstream’s purchase for $20 million of the 9.1-percent minority interest in Bay Gas immediately prior to and included as part of the sale).



ASSETS HELD FOR SALE AT DECEMBER 31, 2018
(Dollars in millions)
	Sempra Renewables		Sempra LNG & Midstream
Cash and cash equivalents	$	7	$	—
Accounts receivable – trade, net	2		5
Accounts receivable – other, net	1		—
Other current assets	1		6
Property, plant and equipment, net	366		324
Other noncurrent assets	—		1
Total assets held for sale	$	377	$	336

Accounts payable – trade	$	2	$	2
Other current liabilities	4		3
Asset retirement obligations	6		8
Total liabilities held for sale	$	12	$	13

Sempra Renewables’ wind equity method investments totaling $291 million at December 31, 2018, which are included in the plan of sale, continue to be classified as Other Investments on Sempra Energy’s Consolidated Balance Sheets. See Note 6 for further discussion.

DIVESTITURES

The following table summarizes the deconsolidation of certain subsidiaries that have been sold in 2018 and 2016, as we discuss below:



DECONSOLIDATION OF SUBSIDIARIES
(Dollars in millions)
	Certain subsidiaries of Sempra Renewables			EnergySouth
	At December 13, 2018			At September 12, 2016
Proceeds from sale, net of transaction costs	$	1,585		$	304
Cash	(7		)	(2		)
Restricted cash	(7		)	—
Other current assets	(14		)	(17		)
Property, plant and equipment, net	(1,303		)	(199		)
Other investments	(329		)	—
Goodwill	—			(72		)
Other noncurrent assets	(24		)	(65		)
Current liabilities	8			25
Long-term debt	70			67
Asset retirement obligations	52			—
Other noncurrent liabilities	5			89
Noncontrolling interests	486			—
Accumulated other comprehensive income	(9		)	—
Gain on sale	$	513		$	130

SEMPRA RENEWABLES

On December 13, 2018, Sempra Renewables completed the sale of the following assets to a subsidiary of Con Ed for cash proceeds of $1.6 billion:


▪	all of its operating solar assets, including assets that we owned through JVs or through tax equity arrangements (other than those interests held by tax equity investors);


▪	its solar and battery storage development projects; and


▪	its 50-percent interest in the Broken Bow 2 wind generation facility.

In 2018, we recognized a pretax gain of $513 million ($367 million after tax) in Gain on Sale of Assets on Sempra Energy’s Consolidated Statement of Operations.

SEMPRA LNG & MIDSTREAM

EnergySouth Inc.

On September 12, 2016, Sempra LNG & Midstream completed the sale of EnergySouth, the parent company of Mobile Gas and Willmut Gas, to Spire Inc. for cash proceeds of $318 million, net of $2 million cash sold, with the buyer assuming debt of $67 million. In 2016, we recognized a pretax gain of $130 million ($78 million after tax) in Gain on Sale of Assets on Sempra Energy’s Consolidated Statement of Operations.

Investment in Rockies Express

In March 2016, Sempra LNG & Midstream entered into an agreement to sell its 25-percent interest in 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 LNG & Midstream’s investment in Rockies Express was $484 million. Following the execution of the agreement, Sempra LNG & Midstream 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 on the Sempra Energy Consolidated Statement of Operations. We discuss non-recurring fair value measures and the associated accounting impact on our investment in Rockies Express in Note 12.

We discuss Sempra LNG & Midstream’s 2016 permanent release of pipeline capacity that it held with Rockies Express and others in Note 16.

REVENUES - CONTRACT LIABILITIES (Details) $ in Millions	12 Months Ended
REVENUES - CONTRACT LIABILITIES (Details) $ in Millions	Dec. 31, 2018 USD ($)
Contract with Customer, Liability [Roll Forward]
Opening balance, January 1, 2018	$ 0
Adoption of ASC 606 adjustment	(68)
Revenue from performance obligations satisfied during reporting period	31
Payments received in advance	(39)
Closing balance, December 31, 2018	(76)
Other Current Liabilities [Member]
Contract with Customer, Liability [Roll Forward]
Closing balance, December 31, 2018	(6)
Deferred Credits and Other [Member]
Contract with Customer, Liability [Roll Forward]
Closing balance, December 31, 2018	(70)
San Diego Gas and Electric Company [Member]
Contract with Customer, Liability [Roll Forward]
Closing balance, December 31, 2018	0
Southern California Gas Company [Member]
Contract with Customer, Liability [Roll Forward]
Closing balance, December 31, 2018	$ 0

EMPLOYEE BENEFIT PLANS - NARRATIVE (Details) - USD ($) $ in Millions		12 Months Ended
	Mar. 09, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]
Dedicated assets in support of certain benefit plans		$ 416	$ 455
Benefit obligation payment for settlement		54
Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan amendments		12	1
Plan assets, payment for settlement		394	194
Settlement charges		12	8	$ 0
Increase due to business combination		0	0
Increase in liability due to special termination benefits		0	0
Settlements		394	194	75
Settlement charge			38	16
Other Postretirement Benefits Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan amendments		0	0
Plan assets, payment for settlement		0	0
Settlement charges		0	0	0
Increase due to business combination		21	0
Increase in liability due to special termination benefits		5	18	26
Settlements		0	0
San Diego Gas and Electric Company [Member] \| Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan amendments		8	0
Plan assets, payment for settlement		145	0
Settlement charges		4	0	0
Increase in liability due to special termination benefits		0	0
Settlements		145	0	75
Settlement charge				16
San Diego Gas and Electric Company [Member] \| Other Postretirement Benefits Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan amendments		0	0
Plan assets, payment for settlement		0	0
Settlement charges		0	0	0
Increase in liability due to special termination benefits		3	0	14
Settlements		0	0
Southern California Gas Company [Member] \| Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets, payment for settlement		231	175
Increase in liability due to special termination benefits		0	0
Settlements		231	175
Settlement charge			30
Southern California Gas Company [Member] \| Other Postretirement Benefits Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets, payment for settlement		0	0
Increase in liability due to special termination benefits		2	18	$ 11
Settlements		0	0
Qualified Plan [Member] \| Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets, payment for settlement		363
Qualified Plan [Member] \| San Diego Gas and Electric Company [Member] \| Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets, payment for settlement		132
Benefit obligation payment for settlement		22
Qualified Plan [Member] \| Southern California Gas Company [Member] \| Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets, payment for settlement		231
Benefit obligation payment for settlement		32
Nonqualified Plan [Member] \| Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Benefit obligation payment for settlement		12	$ 8
Nonqualified Plan [Member] \| San Diego Gas and Electric Company [Member] \| Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Benefit obligation payment for settlement		$ 4
Sempra Texas Holdings Corp [Member] \| Sempra Texas Intermediate Holding Company LLC [Member] \| Other Postretirement Benefits Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Increase due to business combination	$ 21
Sempra Texas Holdings Corp [Member] \| Oncor Electric Delivery Company LLC [Member] \| Sempra Texas Intermediate Holding Company LLC [Member] \| Other Postretirement Benefits Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Gain (loss) arising during the period	$ 27

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - COLLECTION ALLOWANCES (Details) - Allowance, Credit Loss [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Valuation and Qualifying Accounts Disclosure [Line Items]
Allowance balance at January 1	$ 33	$ 35	$ 32
Provisions for uncollectible accounts	14	16	23
Write-offs of uncollectible accounts	(17)	(18)	(20)
Allowance balance at December 31	30	33	35
San Diego Gas and Electric Company [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Allowance balance at January 1	9	8	9
Provisions for uncollectible accounts	9	8	6
Write-offs of uncollectible accounts	(7)	(7)	(7)
Allowance balance at December 31	11	9	8
Southern California Gas Company [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Allowance balance at January 1	16	21	17
Provisions for uncollectible accounts	1	4	14
Write-offs of uncollectible accounts	(7)	(9)	(10)
Allowance balance at December 31	$ 10	$ 16	$ 21

EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2018

Retirement Benefits [Abstract]

Schedule Of Defined Benefit Plans, Change In Benefit Obligation And Fair Value Of Plan Assets



PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS
SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Pension benefits						Other postretirement benefits
	2018			2017			2018			2017
CHANGE IN PROJECTED BENEFIT OBLIGATION
Net obligation at January 1	$	3,857		$	3,679		$	963		$	922
Service cost	124			117			21			21
Interest cost	141			151			36			39
Contributions from plan participants	—			—			23			20
Actuarial (gain) loss	(269		)	286			(123		)	6
Plan amendments	12			1			—			—
Benefit payments	(115		)	(182		)	(74		)	(63		)
Special termination benefits	—			—			5			18
Acquisition	—			—			21			—
Curtailments	—			(1		)	—			—
Settlements	(394		)	(194		)	—			—
Net obligation at December 31	3,356			3,857			872			963

CHANGE IN PLAN ASSETS
Fair value of plan assets at January 1	2,659			2,459			1,209			1,057
Actual return on plan assets	(180		)	421			(56		)	185
Employer contributions	190			155			6			10
Contributions from plan participants	—			—			23			20
Benefit payments	(115		)	(182		)	(74		)	(63		)
Settlements	(394		)	(194		)	—			—
Fair value of plan assets at December 31	2,160			2,659			1,108			1,209
Funded status at December 31	$	(1,196	)	$	(1,198	)	$	236		$	246
Net recorded (liability) asset at December 31	$	(1,196	)	$	(1,198	)	$	236		$	246



PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS
SAN DIEGO GAS & ELECTRIC COMPANY
(Dollars in millions)
	Pension benefits						Other postretirement benefits
	2018			2017			2018			2017
CHANGE IN PROJECTED BENEFIT OBLIGATION
Net obligation at January 1	$	971		$	935		$	185		$	190
Service cost	30			29			5			5
Interest cost	35			38			7			8
Contributions from plan participants	—			—			8			7
Actuarial (gain) loss	(63		)	50			(17		)	(9		)
Plan amendments	8			—			—			—
Benefit payments	(22		)	(83		)	(21		)	(16		)
Special termination benefits	—			—			3			—
Settlements	(145		)	—			—			—
Transfer of liability from other plans	—			2			—			—
Net obligation at December 31	814			971			170			185

CHANGE IN PLAN ASSETS
Fair value of plan assets at January 1	776			714			195			169
Actual return on plan assets	(56		)	120			(12		)	30
Employer contributions	47			22			2			5
Contributions from plan participants	—			—			8			7
Benefit payments	(22		)	(83		)	(21		)	(16		)
Settlements	(145		)	—			—			—
Transfer of assets from other plans	—			3			—			—
Fair value of plan assets at December 31	600			776			172			195
Funded status at December 31	$	(214	)	$	(195	)	$	2		$	10
Net recorded (liability) asset at December 31	$	(214	)	$	(195	)	$	2		$	10



PROJECTED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND FUNDED STATUS
SOUTHERN CALIFORNIA GAS COMPANY
(Dollars in millions)
	Pension benefits						Other postretirement benefits
	2018			2017			2018			2017
CHANGE IN PROJECTED BENEFIT OBLIGATION
Net obligation at January 1	$	2,486		$	2,343		$	737		$	691
Service cost	81			76			15			14
Interest cost	92			98			27			29
Contributions from plan participants	—			—			14			13
Actuarial (gain) loss	(215		)	216			(100		)	16
Benefit payments	(65		)	(73		)	(49		)	(44		)
Special termination benefits	—			—			2			18
Settlements	(231		)	(175		)	—			—
Transfer of liability from other plans	—			1			—			—
Net obligation at December 31	2,148			2,486			646			737

CHANGE IN PLAN ASSETS
Fair value of plan assets at January 1	1,694			1,579			993			870
Actual return on plan assets	(117		)	269			(43		)	151
Employer contributions	104			93			1			3
Contributions from plan participants	—			—			14			13
Benefit payments	(65		)	(73		)	(49		)	(44		)
Settlements	(231		)	(175		)	—			—
Transfer of assets from other plans	—			1			—			—
Fair value of plan assets at December 31	1,385			1,694			916			993
Funded status at December 31	$	(763	)	$	(792	)	$	270		$	256
Net recorded (liability) asset at December 31	$	(763	)	$	(792	)	$	270		$	256

Schedule Of Defined Benefit Plans, Amounts Recognized In Balance Sheet

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



PENSION AND OTHER POSTRETIREMENT BENEFIT OBLIGATIONS, NET OF PLAN ASSETS
(Dollars in millions)
	Pension benefits						Other postretirement benefits
	2018			2017			2018			2017
Sempra Energy Consolidated:
Noncurrent assets	$	—		$	—		$	272		$	266
Current liabilities	(65		)	(69		)	(6		)	(1		)
Noncurrent liabilities	(1,131		)	(1,129		)	(30		)	(19		)
Net recorded (liability) asset	$	(1,196	)	$	(1,198	)	$	236		$	246
SDG&E:
Noncurrent assets	$	—		$	—		$	2		$	10
Current liabilities	(2		)	(13		)	—			—
Noncurrent liabilities	(212		)	(182		)	—			—
Net recorded (liability) asset	$	(214	)	$	(195	)	$	2		$	10
SoCalGas:
Noncurrent assets	$	—		$	—		$	270		$	256
Current liabilities	(3		)	(3		)	—			—
Noncurrent liabilities	(760		)	(789		)	—			—
Net recorded (liability) asset	$	(763	)	$	(792	)	$	270		$	256

Schedule Of Defined Benefit Plans, Amounts In Accumulated Other Comprehensive Income

Amounts recorded in AOCI at December 31, net of income tax effects and amounts recorded as regulatory assets, are as follows:



AMOUNTS IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
	Pension benefits						Other postretirement benefits
	2018			2017			2018		2017
Sempra Energy Consolidated:
Net actuarial (loss) gain	$	(114	)	$	(84	)	$	8	$	4
Prior service cost	(12		)	(4		)	—		—
Total	$	(126	)	$	(88	)	$	8	$	4
SDG&E:
Net actuarial loss	$	(4	)	$	(8	)
Prior service cost	(6		)	—
Total	$	(10	)	$	(8	)
SoCalGas:
Net actuarial loss	$	(6	)	$	(6	)
Prior service cost	(2		)	(2		)
Total	$	(8	)	$	(8	)

Schedule Of Defined Benefit Plans, Pension Plans With Benefit Obligations In Excess Of Plan Assets

The following table shows the obligations of funded pension plans with benefit obligations in excess of plan assets at December 31:



OBLIGATIONS OF FUNDED PENSION PLANS
(Dollars in millions)
	2018		2017
Sempra Energy Consolidated:
Projected benefit obligation	$	3,130	$	3,623
Accumulated benefit obligation	2,894		3,334
Fair value of plan assets	2,160		2,659
SDG&E:
Projected benefit obligation	$	788	$	939
Accumulated benefit obligation	762		900
Fair value of plan assets	600		776
SoCalGas:
Projected benefit obligation	$	2,123	$	2,462
Accumulated benefit obligation	1,919		2,220
Fair value of plan assets	1,385		1,694

We also have unfunded pension plans at Sempra Energy, SDG&E, SoCalGas, IEnova and Chilquinta Energía. The following table shows the obligations of unfunded pension plans at December 31:



OBLIGATIONS OF UNFUNDED PENSION PLANS
(Dollars in millions)
	2018		2017
Sempra Energy Consolidated:
Projected benefit obligation	$	226	$	234
Accumulated benefit obligation	201		215
SDG&E:
Projected benefit obligation	$	26	$	32
Accumulated benefit obligation	19		30
SoCalGas:
Projected benefit obligation	$	25	$	24
Accumulated benefit obligation	21		21



OBLIGATIONS OF FUNDED OTHER POSTRETIREMENT BENEFIT PLANS
(Dollars in millions)
	2018		2017
Sempra Energy Consolidated:
Accumulated postretirement benefit obligation	$	30	$	32
Fair value of plan assets	20		21



OBLIGATIONS OF UNFUNDED OTHER POSTRETIREMENT BENEFIT PLANS
(Dollars in millions)
	2018		2017
Sempra Energy Consolidated:
Accumulated postretirement benefit obligation	$	26	$	9

Schedule of Net Benefit Costs

The following tables provide the components of net periodic benefit cost and pretax amounts recognized in OCI for the years ended December 31:



NET PERIODIC BENEFIT COST AND AMOUNTS RECOGNIZED IN OCI
SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Pension benefits									Other postretirement benefits
	2018			2017			2016			2018			2017			2016
NET PERIODIC BENEFIT COST
Service cost	$	124		$	117		$	107		$	21		$	21		$	20
Interest cost	141			151			160			36			39			42
Expected return on assets	(157		)	(161		)	(166		)	(70		)	(66		)	(69		)
Amortization of:
Prior service cost	11			11			11			1			1			—
Actuarial loss (gain)	23			36			30			(6		)	(4		)	(1		)
Settlement charges	66			38			16			—			—			—
Special termination benefits	—			—			—			5			18			26
Net periodic benefit cost	208			192			158			(13		)	9			18
Regulatory adjustment	(30		)	(42		)	(57		)	17			—			(11		)
Total expense recognized	178			150			101			4			9			7

CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS
RECOGNIZED IN OCI
Net loss (gain)	56			—			26			(4		)	(2		)	(2		)
Prior service cost	12			1			—			—			—			—
Amortization of actuarial loss	(12		)	(10		)	(10		)	—			—			—
Amortization of prior service cost	(2		)	(1		)	(1		)	—			—			—
Settlements	(12		)	(8		)	—			—			—			—
Total recognized in OCI	42			(18		)	15			(4		)	(2		)	(2		)
Total recognized in net periodic benefit cost and OCI	$	220		$	132		$	116		$	—		$	7		$	5



NET PERIODIC BENEFIT COST AND AMOUNTS RECOGNIZED IN OCI
SAN DIEGO GAS & ELECTRIC COMPANY
(Dollars in millions)
	Pension benefits									Other postretirement benefits
	2018			2017			2016			2018			2017			2016
NET PERIODIC BENEFIT COST
Service cost	$	30		$	29		$	29		$	5		$	5		$	5
Interest cost	35			38			41			7			8			7
Expected return on assets	(47		)	(47		)	(49		)	(13		)	(11		)	(12		)
Amortization of:
Prior service cost	2			1			1			3			3			3
Actuarial loss (gain)	1			9			10			(3		)	—			(1		)
Settlement charges	26			—			16			—			—			—
Special termination benefits	—			—			—			3			—			14
Net periodic benefit cost	47			30			48			2			5			16
Regulatory adjustment	(8		)	(8		)	(45		)	—			—			(14		)
Total expense recognized	39			22			3			2			5			2

CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS
RECOGNIZED IN OCI
Net (gain) loss	(1		)	2			1			—			—			—
Prior service cost	8			—			—			—			—			—
Amortization of actuarial loss	(1		)	(1		)	(1		)	—			—			—
Settlements	(4		)	—			—			—			—			—
Total recognized in OCI	2			1			—			—			—			—
Total recognized in net periodic benefit cost and OCI	$	41		$	23		$	3		$	2		$	5		$	2



NET PERIODIC BENEFIT COST AND AMOUNTS RECOGNIZED IN OCI
SOUTHERN CALIFORNIA GAS COMPANY
(Dollars in millions)
	Pension benefits									Other postretirement benefits
	2018			2017			2016			2018			2017			2016
NET PERIODIC BENEFIT COST
Service cost	$	81		$	76		$	67		$	15		$	14		$	14
Interest cost	92			98			101			27			29			32
Expected return on assets	(98		)	(103		)	(103		)	(56		)	(53		)	(56		)
Amortization of:
Prior service cost (credit)	8			9			9			(3		)	(3		)	(4		)
Actuarial loss (gain)	13			19			11			(2		)	(3		)	—
Settlement charges	32			30			—			—			—			—
Special termination benefits	—			—			—			2			18			11
Net periodic benefit cost	128			129			85			(17		)	2			(3		)
Regulatory adjustment	(22		)	(34		)	(12		)	17			—			3
Total expense recognized	106			95			73			—			2			—

CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS
RECOGNIZED IN OCI
Net loss	1			—			4			—			—			—
Prior service cost	—			—			2			—			—			—
Amortization of prior service cost	(1		)	(1		)	—			—			—			—
Total recognized in OCI	—			(1		)	6			—			—			—
Total recognized in net periodic benefit cost and OCI	$	106		$	94		$	79		$	—		$	2		$	—

Schedule of Assumptions Used

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



WEIGHTED-AVERAGE ASSUMPTIONS USED TO DETERMINE BENEFIT OBLIGATION
AT DECEMBER 31
	Pension benefits				Other postretirement benefits
	2018		2017		2018		2017
Sempra Energy Consolidated:
Discount rate	4.30	%	3.65	%	4.30	%	3.70	%
Interest crediting rate⁽¹⁾⁽²⁾	3.36		2.80		3.36		2.80
Rate of compensation increase	2.00-10.00		2.00-10.00		2.00-10.00		2.00-10.00
SDG&E:
Discount rate	4.29	%	3.64	%	4.30	%	3.65	%
Interest crediting rate⁽¹⁾⁽²⁾	3.36		2.80		3.36		2.80
Rate of compensation increase	2.00-10.00		2.00-10.00		2.00-10.00		2.00-10.00
SoCalGas:
Discount rate	4.30	%	3.65	%	4.30	%	3.70	%
Interest crediting rate⁽¹⁾⁽²⁾	3.36		2.80		3.36		2.80
Rate of compensation increase	2.00-10.00		2.00-10.00		2.00-10.00		2.00-10.00

⁽¹⁾ Interest crediting rate for pension benefits applies only to funded cash balance plans.

⁽²⁾ Interest crediting rate for other postretirement benefits applies only to interest bearing health retirement accounts at SDG&E and SoCalGas.



WEIGHTED-AVERAGE ASSUMPTIONS USED TO DETERMINE NET PERIODIC BENEFIT COST
YEARS ENDED DECEMBER 31
	Pension benefits						Other postretirement benefits
	2018		2017		2016		2018		2017		2016
Sempra Energy Consolidated:
Discount rate	3.65	%	4.08	%	4.46	%	3.70	%	4.19	%	4.49	%
Expected return on plan assets	7.00		7.00		7.00		6.49		6.47		6.98
Interest crediting rate⁽¹⁾⁽²⁾	2.80		2.86		3.03		2.80		2.86		3.03
Rate of compensation increase	2.00-10.00		2.00-10.00		2.00-10.00		2.00-10.00		2.00-10.00		2.00-10.00
SDG&E:
Discount rate	3.64	%	4.08	%	4.35	%	3.65	%	4.15	%	4.50	%
Expected return on plan assets	7.00		7.00		7.00		6.94		6.91		6.90
Interest crediting rate⁽¹⁾⁽²⁾	2.80		2.86		3.03		2.80		2.86		3.03
Rate of compensation increase	2.00-10.00		2.00-10.00		2.00-10.00		2.00-10.00		2.00-10.00		2.00-10.00
SoCalGas:
Discount rate	3.65	%	4.10	%	4.50	%	3.70	%	4.20	%	4.50	%
Expected return on plan assets	7.00		7.00		7.00		6.38		6.37		7.00
Interest crediting rate⁽¹⁾⁽²⁾	2.80		2.86		3.03		2.80		2.86		3.03
Rate of compensation increase	2.00-10.00		2.00-10.00		2.00-10.00		2.00-10.00		2.00-10.00		2.00-10.00

⁽¹⁾ Interest crediting rate for pension benefits applies only to funded cash balance plans.

⁽²⁾ Interest crediting rate for other postretirement benefits applies only to interest bearing health retirement accounts at SDG&E and SoCalGas.Following are the health care cost trend rates applicable to our postretirement benefit plans:



ASSUMED HEALTH CARE COST TREND RATES
AT DECEMBER 31
	Other postretirement benefit plans
	Pre-65 retirees						Retirees aged 65 years and older
	2018		2017		2016		2018		2017		2016
Health care cost trend rate assumed for next year	6.50	%	7.00	%	8.00	%	4.75	%	5.00	%	5.50	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend)	4.75	%	5.00	%	5.00	%	4.50	%	4.50	%	4.50	%
Year the rate reaches the ultimate trend	2025		2022		2022		2022		2022		2022

Schedule of Health Care Cost Trend Rates



ASSUMED HEALTH CARE COST TREND RATES
AT DECEMBER 31
	Other postretirement benefit plans
	Pre-65 retirees						Retirees aged 65 years and older
	2018		2017		2016		2018		2017		2016
Health care cost trend rate assumed for next year	6.50	%	7.00	%	8.00	%	4.75	%	5.00	%	5.50	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend)	4.75	%	5.00	%	5.00	%	4.50	%	4.50	%	4.50	%
Year the rate reaches the ultimate trend	2025		2022		2022		2022		2022		2022

Schedule Of Defined Benefit Plans, Fair Value Of Plan Assets By Level In Fair Value Hierarchy

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



FAIR VALUE MEASUREMENTS – INVESTMENT ASSETS OF PENSION PLANS
(Dollars in millions)
	Fair value at December 31, 2018
	Level 1		Level 2		Total
Sempra Energy Consolidated:
Equity securities:
Domestic	$	727	$	—	$	727
International	437		—		437
Registered investment companies	74		—		74
Fixed income securities:
Domestic government bonds	197		29		226
International government bonds	—		8		8
Domestic corporate bonds	—		311		311
International corporate bonds	—		53		53
Registered investment companies	—		1		1
Total investment assets in the fair value hierarchy	$	1,435	$	402	1,837
Investments measured at NAV:
Common/collective trusts					326
Private equity funds					4
Total investment assets⁽¹⁾					$	2,167
SDG&E’s proportionate share of investment assets					$	602
SoCalGas’ proportionate share of investment assets					$	1,389

	Fair value at December 31, 2017
	Level 1		Level 2		Total
Sempra Energy Consolidated:
Equity securities:
Domestic	$	946	$	—	$	946
International	538		—		538
Registered investment companies	102		—		102
Fixed income securities:
Domestic government bonds	242		27		269
International government bonds	—		12		12
Domestic corporate bonds	—		338		338
International corporate bonds	—		64		64
Registered investment companies	—		6		6
Other	—		1		1
Total investment assets in the fair value hierarchy	$	1,828	$	448	2,276
Investments measured at NAV:
Common/collective trusts					384
Private equity funds					4
Total investment assets⁽²⁾					$	2,664
SDG&E’s proportionate share of investment assets					$	777
SoCalGas’ proportionate share of investment assets					$	1,697


⁽¹⁾	Excludes cash and cash equivalents of $14 million and accounts payable of $21 million.


⁽²⁾	Excludes cash and cash equivalents of $13 million and accounts payable of $18 million.

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



FAIR VALUE MEASUREMENTS – INVESTMENT ASSETS OF OTHER POSTRETIREMENT BENEFIT PLANS
(Dollars in millions)
	Fair value at December 31, 2018
	Level 1			Level 2		Total
SDG&E:
Equity securities:
Domestic	$	37		$	—	$	37
International	22			—		22
Registered investment companies	59			—		59
Fixed income securities:
Domestic government bonds	10			1		11
Domestic corporate bonds	—			16		16
International corporate bonds	—			3		3
Registered investment companies	—			7		7
Total investment assets in the fair value hierarchy	128			27		155
Investments measured at NAV – Common/collective trusts						17
Total investment assets⁽¹⁾						172

SoCalGas:
Equity securities:
Domestic	66			—		66
International	39			—		39
Registered investment companies	62			—		62
Fixed income securities:
Domestic government bonds	236			13		249
International government bonds	1			4		5
Domestic corporate bonds	—			175		175
International corporate bonds	—			21		21
Registered investment companies	—			64		64
Derivative financial instruments	(4		)	—		(4		)
Total investment assets in the fair value hierarchy	400			277		677
Investments measured at NAV – Common/collective trusts						237
Total investment assets⁽²⁾						914

Other Sempra Energy:
Equity securities:
Domestic	6			—		6
International	4			—		4
Fixed income securities:
Domestic government bonds	2			—		2
Domestic corporate bonds	—			2		2
Registered investment companies	—			1		1
Total investment assets in the fair value hierarchy	12			3		15
Investments measured at NAV – Common/collective trusts						4
Private equity funds						1
Total other Sempra Energy investment assets						20

Total Sempra Energy Consolidated investment assets in the fair value hierarchy	$	540		$	307
Total Sempra Energy Consolidated investment assets⁽³⁾						$	1,106


⁽¹⁾	Excludes cash and cash equivalents of $1 million and accounts payable of $1 million held in SDG&E PBOP plan trusts.


⁽²⁾	Excludes cash and cash equivalents of $6 million and accounts payable of $4 million held in SoCalGas PBOP plan trusts.


⁽³⁾	Excludes cash and cash equivalents of $7 million and accounts payable of $5 million at Sempra Energy Consolidated.



FAIR VALUE MEASUREMENTS – INVESTMENT ASSETS OF OTHER POSTRETIREMENT BENEFIT PLANS
(Dollars in millions)
	Fair value at December 31, 2017
	Level 1		Level 2		Total
SDG&E:
Equity securities:
Domestic	$	46	$	—	$	46
International	26		—		26
Registered investment companies	52		—		52
Fixed income securities:
Domestic government bonds	12		1		13
International government bonds	—		1		1
Domestic corporate bonds	—		17		17
International corporate bonds	—		3		3
Registered investment companies	—		17		17
Total investment assets in the fair value hierarchy	136		39		175
Investments measured at NAV – Common/collective trusts					20
Total investment assets⁽¹⁾					195

SoCalGas:
Equity securities:
Domestic	78		—		78
International	44		—		44
Registered investment companies	41		—		41
Fixed income securities:
Domestic government bonds	125		13		138
International government bonds	—		7		7
Domestic corporate bonds	—		164		164
International corporate bonds	—		28		28
Registered investment companies	—		85		85
Total investment assets in the fair value hierarchy	288		297		585
Investments measured at NAV – Common/collective trusts					406
Total investment assets⁽²⁾					991

Other Sempra Energy:
Equity securities:
Domestic	7		—		7
International	5		—		5
Registered investment companies	1		—		1
Fixed income securities:
Domestic government bonds	1		1		2
Domestic corporate bonds	—		2		2
International corporate bonds	—		1		1
Total investment assets in the fair value hierarchy	14		4		18
Investments measured at NAV – Common/collective trusts					2
Private equity funds					1
Total other Sempra Energy investment assets					21

Total Sempra Energy Consolidated investment assets in the fair value hierarchy	$	438	$	340
Total Sempra Energy Consolidated investment assets⁽³⁾					$	1,207


⁽¹⁾	Excludes cash and cash equivalents of $1 million and accounts payable of $1 million held in SDG&E PBOP plan trusts.


⁽²⁾	Excludes cash and cash equivalents of $4 million and accounts payable of $2 million held in SoCalGas PBOP plan trusts.

⁽³⁾

Excludes cash and cash equivalents of $5 million and accounts payable of $3 million at Sempra Energy Consolidated.

Schedule Of Defined Benefit Plans, Estimated Future Employer Contributions In Next Fiscal Year

We expect to contribute the following amounts to our pension and PBOP plans in 2019:



EXPECTED CONTRIBUTIONS
(Dollars in millions)
	Sempra Energy Consolidated		SDG&E		SoCalGas
Pension plans	$	228	$	40	$	118
Other postretirement benefit plans	10		—		1

Schedule of Expected Benefit Payments

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



EXPECTED BENEFIT PAYMENTS
(Dollars in millions)
	Sempra Energy Consolidated				SDG&E				SoCalGas
	Pension benefits		Other postretirement benefits		Pension benefits		Other postretirement benefits		Pension benefits		Other postretirement benefits
2019	$	416	$	54	$	109	$	10	$	207	$	36
2020	270		51		69		10		159		36
2021	268		52		64		10		154		37
2022	246		52		61		11		152		37
2023	236		52		62		11		149		38
2024-2028	1,097		257		282		51		698		187

Schedule Of Defined Benefit Plans Contributions

Employer contributions to the savings plans were as follows:



EMPLOYER CONTRIBUTIONS TO SAVINGS PLANS
(Dollars in millions)
	2018		2017		2016
Sempra Energy Consolidated	$	43	$	41	$	42
SDG&E	15		14		15
SoCalGas	23		22		22

SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT - STATEMENT OF OPERATIONS (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2018

Dec. 31, 2017

^[1]

Dec. 31, 2016

^[1]

Condensed Income Statements, Captions [Line Items]

Interest income

$ 104

$ 46

$ 26

Interest expense

(925)

(659)

(553)

Other (expense) income, net

233

138

Income tax (expense) benefit

(96)

(1,276)

(389)

Net income

$ 964

$ 334

$ (530)

$ 358

$ (451)

$ 102

$ 248

$ 452

1,126

351

1,519

Dividends on preferred stock

(36)

$ (125)

$ 0

Earnings attributable to common shares

$ 864

$ 274

$ (561)

$ 347

$ (501)

$ 57

$ 259

$ 441

Basic earnings per common share (in dollars per share)

$ 3.51

$ 1.22

$ (1.99)

$ 1.39

$ (1.80)

$ 0.41

$ 0.99

$ 1.80

$ 3.45

$ 1.02

$ 5.48

Weighted-average number of shares outstanding, basic (in shares)

274,300

273,900

265,800

257,900

251,900

251,700

251,400

251,100

268,072

251,545

250,217

Diluted earnings per common share (in dollars per share)

$ 3.25

$ 1.21

$ (1.99)

$ 1.38

$ (1.80)

$ 0.41

$ 0.98

$ 1.79

$ 3.42

$ 1.01

$ 5.46

Weighted-average number of shares outstanding, diluted (in shares)

296,400

275,900

265,800

259,500

251,900

253,400

252,800

252,200

269,852

252,300

251,155

Parent Company [Member]

Condensed Income Statements, Captions [Line Items]

Interest income

$ 14

$ 0

Interest expense

(495)

(293)

(277)

Operation and maintenance

(82)

(80)

(76)

Other (expense) income, net

(16)

100

(7)

Income tax (expense) benefit

154

181

Net of income tax

(425)

(240)

(179)

Equity in earnings of subsidiaries, net of income taxes

1,474

496

1,549

Net income

1,049

256

1,370

Dividends on preferred stock

(125)

Earnings attributable to common shares

$ 924

$ 256

$ 1,370

Basic earnings per common share (in dollars per share)

$ 3.45

$ 1.02

$ 5.48

Weighted-average number of shares outstanding, basic (in shares)

268,072

251,545

250,217

Diluted earnings per common share (in dollars per share)

$ 3.42

$ 1.01

$ 5.46

Weighted-average number of shares outstanding, diluted (in shares)

269,852

252,300

251,155

[1]	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1.

INCOME TAXES - RECONCILIATION TO EFFECTIVE TAX RATE (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Line Items]

Income tax expense

$ 96

$ 1,276

^[1]

$ 389

^[1]

Income before income taxes and equity earnings of unconsolidated entities

1,046

1,551

^[1]

1,824

^[1]

Equity earnings, before income tax

(236)

Pretax income

$ 810

$ 1,585

$ 1,830

Effective Income Tax Rate Reconciliation, Percent [Abstract]

U.S. federal statutory income tax rate

21.00%

35.00%

Effects of the TCJA

11.00%

55.00%

0.00%

Non-U.S. earnings taxed at lower statutory income tax rates

9.00%

(3.00%)

Depreciation

7.00%

6.00%

4.00%

Foreign exchange and inflation effects

4.00%

3.00%

(2.00%)

Compensation-related items

3.00%

0.00%

(2.00%)

Unrecognized income tax benefits

2.00%

0.00%

Noncontrolling interests in tax equity arrangements

2.00%

0.00%

Resolution of prior years’ income tax items

0.00%

(2.00%)

0.00%

Impairment losses at Sempra LNG & Midstream

(19.00%)

0.00%

Repairs expenditures

(8.00%)

(6.00%)

(4.00%)

Tax credits

(6.00%)

(4.00%)

(3.00%)

State income taxes, net of federal income tax benefit

(5.00%)

1.00%

Self-developed software expenditures

(4.00%)

(3.00%)

Allowance for equity funds used during construction

(3.00%)

(2.00%)

Amortization of excess deferred income taxes

(2.00%)

0.00%

Merger-related transaction costs

(1.00%)

0.00%

Other, net

1.00%

3.00%

0.00%

Effective income tax rate

12.00%

81.00%

21.00%

San Diego Gas and Electric Company [Member]

Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Line Items]

Income tax expense

$ 173

$ 155

^[1]

$ 280

^[1]

Income before income taxes and equity earnings of unconsolidated entities

849

576

^[1]

845

^[1]

Pretax income

$ 849

$ 576

$ 845

Effective Income Tax Rate Reconciliation, Percent [Abstract]

U.S. federal statutory income tax rate

21.00%

35.00%

Effects of the TCJA

0.00%

5.00%

0.00%

Depreciation

3.00%

7.00%

5.00%

Compensation-related items

0.00%

(1.00%)

Resolution of prior years’ income tax items

0.00%

(4.00%)

(1.00%)

Repairs expenditures

(3.00%)

(8.00%)

(4.00%)

State income taxes, net of federal income tax benefit

5.00%

3.00%

5.00%

Self-developed software expenditures

(2.00%)

(6.00%)

(3.00%)

Allowance for equity funds used during construction

(2.00%)

(4.00%)

(2.00%)

Amortization of excess deferred income taxes

(1.00%)

0.00%

Other, net

(1.00%)

Effective income tax rate

20.00%

27.00%

33.00%

Southern California Gas Company [Member]

Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Line Items]

Income tax expense

$ 92

$ 160

^[1]

$ 143

^[1]

Income before income taxes and equity earnings of unconsolidated entities

493

557

^[1]

493

^[1]

Pretax income

$ 493

$ 557

$ 493

Effective Income Tax Rate Reconciliation, Percent [Abstract]

U.S. federal statutory income tax rate

21.00%

35.00%

Depreciation

7.00%

9.00%

Compensation-related items

1.00%

0.00%

(1.00%)

Unrecognized income tax benefits

4.00%

0.00%

Resolution of prior years’ income tax items

(1.00%)

(2.00%)

2.00%

Repairs expenditures

(7.00%)

(8.00%)

(9.00%)

State income taxes, net of federal income tax benefit

2.00%

3.00%

2.00%

Self-developed software expenditures

(3.00%)

(5.00%)

(6.00%)

Allowance for equity funds used during construction

(2.00%)

(3.00%)

(2.00%)

Amortization of excess deferred income taxes

(2.00%)

0.00%

Other, net

(1.00%)

0.00%

(1.00%)

Effective income tax rate

19.00%

29.00%

[1]	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1.

REGULATORY MATTERS (Tables)

12 Months Ended

Dec. 31, 2018

Regulated Operations [Abstract]

Schedule of Regulatory Assets

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



REGULATORY ASSETS (LIABILITIES)
(Dollars in millions)
	December 31,
	2018			2017
SDG&E:
Fixed-price contracts and other derivatives	$	(150	)	$	96
Deferred income taxes refundable in rates	(236		)	(281		)
Pension and other postretirement benefit plan obligations	186			153
Removal obligations	(1,848		)	(1,846		)
Unamortized loss on reacquired debt	7			9
Environmental costs	28			29
Sunrise Powerlink fire mitigation	120			119
Regulatory balancing accounts⁽¹⁾
Commodity – electric	(8		)	82
Gas transportation	45			22
Safety and reliability	70			48
Public purpose programs	(62		)	(70		)
Other balancing accounts	145			233
Other regulatory liabilities, net⁽²⁾	(177		)	(70		)
Total SDG&E	(1,880		)	(1,476		)
SoCalGas:
Pension and other postretirement benefit plan obligations	470			513
Employee benefit costs	49			45
Removal obligations	(833		)	(924		)
Deferred income taxes refundable in rates	(336		)	(437		)
Unamortized loss on reacquired debt	7			8
Environmental costs	28			22
Workers’ compensation	9			12
Regulatory balancing accounts⁽¹⁾
Commodity – gas, including transportation	196			151
Safety and reliability	332			266
Public purpose programs	(325		)	(274		)
Other balancing accounts	(68		)	(114		)
Other regulatory liabilities, net⁽²⁾	(130		)	(64		)
Total SoCalGas	(601		)	(796		)
Sempra Mexico:
Deferred income taxes recoverable in rates	81			83
Other regulatory assets	6			—
Total Sempra Energy Consolidated	$	(2,394	)	$	(2,189	)


⁽¹⁾	At December 31, 2018 and 2017, the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $78 million and $63 million, respectively. At December 31, 2018 and 2017, the noncurrent portion of regulatory balancing accounts – net undercollected for SoCalGas was $185 million and $118 million, respectively.


⁽²⁾	Includes regulatory assets earning a rate of return.

Schedule of Regulatory Liabilities

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



REGULATORY ASSETS (LIABILITIES)
(Dollars in millions)
	December 31,
	2018			2017
SDG&E:
Fixed-price contracts and other derivatives	$	(150	)	$	96
Deferred income taxes refundable in rates	(236		)	(281		)
Pension and other postretirement benefit plan obligations	186			153
Removal obligations	(1,848		)	(1,846		)
Unamortized loss on reacquired debt	7			9
Environmental costs	28			29
Sunrise Powerlink fire mitigation	120			119
Regulatory balancing accounts⁽¹⁾
Commodity – electric	(8		)	82
Gas transportation	45			22
Safety and reliability	70			48
Public purpose programs	(62		)	(70		)
Other balancing accounts	145			233
Other regulatory liabilities, net⁽²⁾	(177		)	(70		)
Total SDG&E	(1,880		)	(1,476		)
SoCalGas:
Pension and other postretirement benefit plan obligations	470			513
Employee benefit costs	49			45
Removal obligations	(833		)	(924		)
Deferred income taxes refundable in rates	(336		)	(437		)
Unamortized loss on reacquired debt	7			8
Environmental costs	28			22
Workers’ compensation	9			12
Regulatory balancing accounts⁽¹⁾
Commodity – gas, including transportation	196			151
Safety and reliability	332			266
Public purpose programs	(325		)	(274		)
Other balancing accounts	(68		)	(114		)
Other regulatory liabilities, net⁽²⁾	(130		)	(64		)
Total SoCalGas	(601		)	(796		)
Sempra Mexico:
Deferred income taxes recoverable in rates	81			83
Other regulatory assets	6			—
Total Sempra Energy Consolidated	$	(2,394	)	$	(2,189	)


⁽¹⁾	At December 31, 2018 and 2017, the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $78 million and $63 million, respectively. At December 31, 2018 and 2017, the noncurrent portion of regulatory balancing accounts – net undercollected for SoCalGas was $185 million and $118 million, respectively.


⁽²⁾	Includes regulatory assets earning a rate of return.

Proposed Revenue Requirements



AUTHORIZED COST OF CAPITAL AND RATE STRUCTURE – CPUC

SDG&E							SoCalGas
Authorized weighting		Return on rate base		Weighted return on rate base			Authorized weighting		Return on rate base		Weighted return on rate base
45.25	%	4.59	%	2.08	%	Long-Term Debt	45.60	%	4.33	%	1.97	%
2.75		6.22		0.17		Preferred Stock	2.40		6.00		0.14
52.00		10.20		5.30		Common Equity	52.00		10.05		5.23
100.00	%			7.55	%		100.00	%			7.34	%

The changes to the embedded cost of debt and return on rate base resulting from the updates included in the filed advice letters are summarized below:



CHANGES TO THE EMBEDDED COST OF DEBT

	SDG&E						SoCalGas
	Cost of debt			Return on rate base			Cost of debt			Return on rate base
Previously	5.00		%	7.79		%	5.77		%	8.02		%
Authorized, effective January 1, 2018	4.59		%	7.55		%	4.33		%	7.34		%
Differences	(41	)	bps	(24	)	bps	(144	)	bps	(68	)	bps

Schedule Of FERC Cost Of Capital Table

SDG&E’s current estimated FERC return on rate base under the TO4 formula rate request filing is 7.51 percent based on its capital structure as follows:



SDG&E COST OF CAPITAL AND RATE STRUCTURE – FERC

	Weighting		Return on rate base		Weighted return on rate base
Long-Term Debt	43.44	%	4.21	%	1.83	%
Common Equity	56.56		10.05		5.68
	100.00	%			7.51	%

INCOME TAXES - COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Income Tax Expense (Benefit), Continuing Operations [Abstract]

U.S.

$ (102)

$ 878

$ 773

Non-U.S.

912

707

1,057

Pretax income

810

1,585

1,830

Current Income Tax Expense (Benefit), Continuing Operations [Abstract]

U.S. federal

(2)

U.S. state

Non-U.S.

214

116

171

Total

278

116

172

Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract]

U.S. federal

(120)

536

U.S. state

(159)

297

Non-U.S.

101

327

135

Total

(178)

1,160

222

Deferred investment tax credits

(4)

(5)

Total income tax expense

1,276

^[1]

389

^[1]

San Diego Gas and Electric Company [Member]

Income Tax Expense (Benefit), Continuing Operations [Abstract]

Pretax income

849

576

845

Current Income Tax Expense (Benefit), Continuing Operations [Abstract]

U.S. federal

104

100

U.S. state

Total

134

165

Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract]

U.S. federal

223

U.S. state

(41)

Total

(12)

261

Deferred investment tax credits

(2)

(3)

Total income tax expense

173

155

^[1]

280

^[1]

Southern California Gas Company [Member]

Income Tax Expense (Benefit), Continuing Operations [Abstract]

Pretax income

493

557

493

Current Income Tax Expense (Benefit), Continuing Operations [Abstract]

U.S. federal

U.S. state

Total

Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract]

U.S. federal

144

123

U.S. state

(5)

(18)

Total

139

105

Deferred investment tax credits

(2)

Total income tax expense

$ 92

$ 160

^[1]

$ 143

^[1]

[1]	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1.

ACQUISTION AND DIVESTITURE ACTIVITY - ASSETS ACQUIRED AND LIABILITIES ASSUMED (Details) - USD ($) $ in Millions					3 Months Ended			12 Months Ended
	Dec. 18, 2018	Mar. 09, 2018	Dec. 14, 2016	Sep. 26, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Fair value of equity interest in IEnova Pipelines immediately prior to acquisition								$ 0	$ 28	$ 1,144
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract]
Goodwill					$ 2,373	$ 2,397	$ 2,364	2,373	2,397	2,364
Acquisition of business – measurement period adjustment									$ (13)
Compania Transmisora del Norte Grande S.A. [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Cash and cash equivalents	$ 18
Other current assets	5
Other intangible assets	46
Property, plant and equipment	162
Total assets acquired	231
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract]
Other current liabilities	1
Deferred income taxes	42
Total liabilities assumed	43
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net	188
Goodwill	38
Consideration transferred	$ 226
Oncor Holdings Electric Delivery Company LLC [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Accounts receivable		$ 1
Due from unconsolidated affiliates		46
Investment in Oncor Holdings		9,227
Deferred income taxes		287
Other noncurrent assets		109
Total assets acquired		9,670
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract]
Other current liabilities		23
Pension and other postretirement benefit plan obligations		21
Deferred credits and other		58
Total liabilities assumed		102
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net		9,568
Consideration transferred		$ 9,568
Oncor Holdings Electric Delivery Company LLC [Member] \| Scenario, Adjustment [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Investment in Oncor Holdings					64			64
Deferred income taxes					66			66
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract]
Deferred credits and other					2			2
Consideration transferred					2
Sempra Mexico [Member] \| IEnova Pipelines [Member]
Business Acquisition [Line Items]
Cash consideration (fair value of total consideration)				$ 1,144
Fair value of equity interest in IEnova Pipelines immediately prior to acquisition				1,144
Total fair value of business combination				2,288
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Cash and cash equivalents				66
Restricted cash				0
Accounts receivable				39
Other current assets				6
Other intangible assets				0
Deferred income taxes				0
Regulatory assets				33
Property, plant and equipment				1,248
Other noncurrent assets				1
Total assets acquired				1,393
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract]
Short-term debt				0
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				127
Fixed-price contracts and other derivatives, noncurrent				19
Other noncurrent liabilities				11
Total liabilities assumed				566
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net				827
Goodwill				$ 1,461
Sempra Mexico [Member] \| IEnova Pipelines [Member] \| Scenario, Adjustment [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Regulatory assets							33			33
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract]
Deferred income taxes							119			$ 119
Acquisition of business – measurement period adjustment							$ 86
Sempra Mexico [Member] \| Ventika [Member]
Business Acquisition [Line Items]
Cash consideration (fair value of total consideration)			$ 310
Fair value of equity interest in IEnova Pipelines immediately prior to acquisition			0
Total fair value of business combination			310
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Cash and cash equivalents			0
Restricted cash			68
Accounts receivable			14
Other current assets			1
Other intangible assets			154
Deferred income taxes			36
Regulatory assets			0
Property, plant and equipment			673
Other noncurrent assets			3
Total assets acquired			949
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract]
Short-term debt			125
Accounts payable			1
Due to unconsolidated affiliates			0
Current portion of long-term debt			7
Fixed-price contracts and other derivatives, current			4
Other current liabilities			8
Long-term debt			478
Asset retirement obligations			2
Deferred income taxes			120
Fixed-price contracts and other derivatives, noncurrent			10
Other noncurrent liabilities			0
Total liabilities assumed			755
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net			194
Goodwill			$ 116
Sempra Mexico [Member] \| Ventika [Member] \| Scenario, Adjustment [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Deferred income taxes					$ 13			$ 13
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract]
Acquisition of business – measurement period adjustment						$ (13)

COMMITMENTS AND CONTINGENCIES - ENVIRONMENTAL ISSUES (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Environmental Issues [Line Items]
Environmental Costs Recognized, Capitalized in Period	$ 101	$ 92	$ 53
San Diego Gas and Electric Company [Member]
Environmental Issues [Line Items]
Environmental Costs Recognized, Capitalized in Period	38	46	17
Southern California Gas Company [Member]
Environmental Issues [Line Items]
Environmental Costs Recognized, Capitalized in Period	$ 62	$ 45	$ 35

SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT - BALANCE SHEETS (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
ASSETS
Cash and cash equivalents	$ 190	$ 288
Due from affiliates	39	37
Income taxes receivable	68	110
Other current assets	257	202
Total current assets	3,645	3,341
Due from affiliates	688	598
Deferred income taxes	151	170
Other assets	974	792
Total assets	60,638	50,454	$ 47,786
Liabilities and shareholders’ equity:
Current portion of long-term debt	1,673	1,427
Due to affiliates	10	7
Other current liabilities	970	816
Total current liabilities	7,523	6,635
Long-term debt	21,611	16,445
Due to affiliates	37	35
Commitments and contingencies (Note 4)
Total shareholders’ equity	17,138	12,670
Total liabilities and equity	60,638	50,454
Parent Company [Member]
ASSETS
Cash and cash equivalents	14	104	$ 12	$ 4
Due from affiliates	93	83
Income taxes receivable	397	272
Other current assets	9	6
Total current assets	513	465
Investments in subsidiaries	28,778	17,924
Due from affiliates	3	2
Deferred income taxes	1,554	1,802
Other assets	572	656
Total assets	31,420	20,849
Liabilities and shareholders’ equity:
Current portion of long-term debt	1,498	500
Due to affiliates	287	280
Other current liabilities	527	396
Total current liabilities	2,312	1,176
Long-term debt	9,647	6,198
Due to affiliates	1,812	300
Other long-term liabilities	511	505
Commitments and contingencies (Note 4)
Total shareholders’ equity	17,138	12,670
Total liabilities and equity	$ 31,420	$ 20,849

DEBT AND CREDIT FACILITIES - NOTES ISSUED IN LONG-TERM DEBT OFFERINGS (Details) - Sempra Energy [Member] - USD ($) $ in Millions	Jan. 12, 2018	Dec. 31, 2018
Floating Rate Notes Due Twenty Nineteen [Member]
Debt Instrument [Line Items]
Debt amount	$ 500
Floating Rate Notes Due Twenty Nineteen [Member] \| LIBOR [Member]
Debt Instrument [Line Items]
Variable percentage rate	0.25%
Floating Rate Notes Due Twenty Twenty One [Member]
Debt Instrument [Line Items]
Debt amount	$ 700
Floating Rate Notes Due Twenty Twenty One [Member] \| LIBOR [Member]
Debt Instrument [Line Items]
Variable percentage rate	0.50%
Two Point Four Percent Notes Due Twenty Twenty [Member]
Debt Instrument [Line Items]
Stated percentage rate		2.40%
Debt amount	$ 500
Two Point Nine Percent Notes Due Twenty Twenty Three [Member]
Debt Instrument [Line Items]
Stated percentage rate		2.90%
Debt amount	500
Three Point Four Percent Notes Due Twenty Twenty Eight [Member]
Debt Instrument [Line Items]
Stated percentage rate		3.40%
Debt amount	1,000
Three Point Eight Percent Notes Due Twenty Twenty Eight [Member]
Debt Instrument [Line Items]
Stated percentage rate		3.80%
Debt amount	1,000
Four Percent Notes Due Twenty Forty Eight [Member]
Debt Instrument [Line Items]
Stated percentage rate		4.00%
Debt amount	$ 800

DEBT AND CREDIT FACILITIES - MATURITIES OF LONG-TERM DEBT (5 YEAR SCHEDULE) (Details)	Dec. 31, 2018 USD ($)
Schedule Of Long Term Debt Maturities [Line Items]
2019	$ 1,654,000,000
2020	1,619,000,000
2021	2,125,000,000
2022	682,000,000
2023	1,821,000,000
Thereafter	14,166,000,000
Total	22,067,000,000
San Diego Gas and Electric Company [Member]
Schedule Of Long Term Debt Maturities [Line Items]
2019	64,000,000
2020	71,000,000
2021	425,000,000
2022	62,000,000
2023	500,000,000
Thereafter	3,874,000,000
Total	4,996,000,000
Southern California Gas Company [Member]
Schedule Of Long Term Debt Maturities [Line Items]
2019	0
2020	0
2021	0
2022	0
2023	0
Thereafter	3,459,000,000
Total	3,459,000,000
Other Sempra Energy [Member]
Schedule Of Long Term Debt Maturities [Line Items]
2019	1,590,000,000
2020	1,548,000,000
2021	1,700,000,000
2022	620,000,000
2023	1,321,000,000
Thereafter	6,833,000,000
Total	$ 13,612,000,000

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Commodity Derivative Volumes Table

The following table summarizes net energy derivative volumes.



NET ENERGY DERIVATIVE VOLUMES
(Quantities in millions)
		December 31,
Commodity	Unit of measure	2018	2017
Sempra Energy Consolidated:
Natural gas	MMBtu	35	46
Electricity	MWh	2	3
Congestion revenue rights	MWh	52	59
SDG&E:
Natural gas	MMBtu	33	39
Electricity	MWh	2	3
Congestion revenue rights	MWh	52	59

Notional Amounts Of Interest Rate Derivatives Table

The following table presents the net notional amounts of our interest rate derivatives, excluding JVs.



INTEREST RATE DERIVATIVES
(Dollars in millions)
	December 31, 2018			December 31, 2017
	Notional debt		Maturities	Notional debt		Maturities
Sempra Energy Consolidated:
Cash flow hedges⁽¹⁾⁽²⁾	$	594	2019-2032	$	861	2018-2032
SDG&E:
Cash flow hedge⁽¹⁾⁽²⁾	142		2019	295		2018-2019


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

⁽²⁾

In December 2018, OMEC LLC entered into new floating-to-fixed interest rate swaps with notional amounts of $159 million effective April 30, 2019 through October 31, 2019, and $142 million effective October 31, 2019 through October 31, 2023.The following table presents the net notional amounts of our foreign currency derivatives, excluding JVs.



FOREIGN CURRENCY DERIVATIVES
(Dollars in millions)
	December 31, 2018			December 31, 2017
	Notional amount		Maturities	Notional amount		Maturities
Sempra Energy Consolidated:
Cross-currency swaps	$	306	2019-2023	$	408	2018-2023
Other foreign currency derivatives	1,158		2019-2020	345		2018-2019

Derivative Instruments on the Consolidated Balance Sheet Table

The following tables provide the fair values of derivative instruments on the Consolidated Balance Sheets at December 31, 2018 and 2017, including the amount of cash collateral receivables that were not offset, as the cash collateral was in excess of liability positions.



DERIVATIVE INSTRUMENTS ON THE CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
	December 31, 2018
	Current assets: Other ⁽¹⁾			Other assets: Sundry			Current liabilities: Other			Deferred credits and other liabilities: Deferred credits and other
Sempra Energy Consolidated:
Derivatives designated as hedging instruments:
Interest rate and foreign exchange instruments⁽²⁾	$	2		$	—		$	(3	)	$	(147	)
Derivatives not designated as hedging instruments:
Commodity contracts not subject to rate recovery	153			7			(164		)	(6		)
Associated offsetting commodity contracts	(133		)	(3		)	133			3
Commodity contracts subject to rate recovery	64			233			(42		)	(72		)
Associated offsetting commodity contracts	(6		)	(2		)	6			2
Associated offsetting cash collateral	—			—			—			2
Net amounts presented on the balance sheet	80			235			(70		)	(218		)
Additional cash collateral for commodity contracts not subject to rate recovery	19			—			—			—
Additional cash collateral for commodity contracts subject to rate recovery	33			—			—			—
Total⁽³⁾	$	132		$	235		$	(70	)	$	(218	)
SDG&E:
Derivatives designated as hedging instruments:
Interest rate instruments⁽²⁾	$	—		$	—		$	(1	)	$	—
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	60			233			(37		)	(72		)
Associated offsetting commodity contracts	(6		)	(2		)	6			2
Associated offsetting cash collateral	—			—			—			2
Net amounts presented on the balance sheet	54			231			(32		)	(68		)
Additional cash collateral for commodity contracts subject to rate recovery	28			—			—			—
Total⁽³⁾	$	82		$	231		$	(32	)	$	(68	)
SoCalGas:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	$	4		$	—		$	(5	)	$	—
Net amounts presented on the balance sheet	4			—			(5		)	—
Additional cash collateral for commodity contracts subject to rate recovery	5			—			—			—
Total	$	9		$	—		$	(5	)	$	—


⁽¹⁾	Included in Current Assets: Fixed-Price Contracts and Other Derivatives for SDG&E.


⁽²⁾	Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE.


⁽³⁾	Normal purchase contracts previously measured at fair value are excluded.



DERIVATIVE INSTRUMENTS ON THE CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
	December 31, 2017
	Current assets: Other ⁽¹⁾			Other assets: Sundry			Current liabilities: Other			Deferred credits and other liabilities: Deferred credits and other
Sempra Energy Consolidated:
Derivatives designated as hedging instruments:
Interest rate and foreign exchange instruments⁽²⁾	$	5		$	2		$	(51	)	$	(165	)
Derivatives not designated as hedging instruments:
Foreign exchange instruments	—			—			(1		)	—
Commodity contracts not subject to rate recovery	81			8			(72		)	(6		)
Associated offsetting commodity contracts	(67		)	(5		)	67			5
Commodity contracts subject to rate recovery	28			101			(65		)	(120		)
Associated offsetting commodity contracts	—			(1		)	—			1
Associated offsetting cash collateral	—			—			19			4
Net amounts presented on the balance sheet	47			105			(103		)	(281		)
Additional cash collateral for commodity contracts not subject to rate recovery	2			—			—			—
Additional cash collateral for commodity contracts subject to rate recovery	17			—			—			—
Total⁽³⁾	$	66		$	105		$	(103	)	$	(281	)
SDG&E:
Derivatives designated as hedging instruments:
Interest rate instruments⁽²⁾	$	—		$	—		$	(10	)	$	(3	)
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	26			101			(63		)	(120		)
Associated offsetting commodity contracts	—			(1		)	—			1
Associated offsetting cash collateral	—			—			19			4
Net amounts presented on the balance sheet	26			100			(54		)	(118		)
Additional cash collateral for commodity contracts subject to rate recovery	16			—			—			—
Total⁽³⁾	$	42		$	100		$	(54	)	$	(118	)
SoCalGas:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	$	2		$	—		$	(2	)	$	—
Net amounts presented on the balance sheet	2			—			(2		)	—
Additional cash collateral for commodity contracts subject to rate recovery	1			—			—			—
Total	$	3		$	—		$	(2	)	$	—


⁽¹⁾	Included in Current Assets: Fixed-Price Contracts and Other Derivatives for SDG&E.


⁽²⁾	Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE.

⁽³⁾

Normal purchase contracts previously measured at fair value are excluded.

Fair Value Hedge Impact on the Consolidated Statement of Operations Table

The table below presents the effects of derivative instruments designated as fair value hedges on the Consolidated Statement of Operations. There were no fair value hedges outstanding for the years ended December 31, 2018 or 2017.



FAIR VALUE HEDGE IMPACTS
(Dollars in millions)
		Pretax gain (loss) on derivatives recognized in earnings
	Location	Year ended December 31, 2016
Sempra Energy Consolidated:
Interest rate instruments	Interest Expense	$	3
Interest rate instruments	Other Income, Net	(2		)
Total		$	1

Cash Flow Hedge Impact on the Consolidated Statements Of Operations Table

The table below includes the effects of derivative instruments designated as cash flow hedges on the Consolidated Statements of Operations and in OCI and AOCI.



CASH FLOW HEDGE IMPACTS
(Dollars in millions)
	Pretax gain (loss) recognized in OCI										Pretax gain (loss) reclassified from AOCI into earnings
	Years ended December 31,										Years ended December 31,
	2018			2017			2016			Location	2018			2017			2016
Sempra Energy Consolidated:
Interest rate and foreign exchange instruments⁽¹⁾	$	31		$	19		$	(8	)	Interest Expense	$	—		$	4		$	(17	)
										Other Income, Net	2			—			—
Interest rate instruments	—			—			—			Gain on Sale of Assets	(9		)	—			—
Interest rate and foreign exchange instruments	41			(34		)	(4		)	Equity Earnings	(7		)	(20		)	(15		)
Interest rate and foreign exchange instruments	—			—			—			Remeasurement of Equity Method Investment	—			—			(7		)
Foreign exchange instruments	(4		)	4			4			Revenues: Energy- Related Businesses	1			2			—
Commodity contracts not subject to rate recovery	—			3			(13		)	Revenues: Energy- Related Businesses	—			(9		)	6
Total	$	68		$	(8	)	$	(21	)		$	(13	)	$	(23	)	$	(33	)
SDG&E:
Interest rate instruments⁽¹⁾	$	1		$	(2	)	$	(2	)	Interest Expense	$	(7	)	$	(13	)	$	(12	)
SoCalGas:
Interest rate instruments	$	—		$	—		$	—		Interest Expense	$	(1	)	$	—		$	(1	)

⁽¹⁾

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

Undesignated Derivative Impact on the Consolidated Statements of Operations

The following table summarizes the effects of derivative instruments not designated as hedging instruments on the Consolidated Statements of Operations.



UNDESIGNATED DERIVATIVE IMPACTS
(Dollars in millions)
		Pretax gain (loss) on derivatives recognized in earnings
		Years ended December 31,
	Location	2018		2017			2016
Sempra Energy Consolidated:
Foreign exchange instruments	Other Income, Net	$	3	$	49		$	(32	)
Foreign exchange instruments	Equity Earnings	—		1			3
Commodity contracts not subject to rate recovery	Revenues: Energy-Related Businesses	26		16			(18		)
Commodity contracts not subject to rate recovery	Operation and Maintenance	—		—			1
Commodity contracts subject to rate recovery	Cost of Electric Fuel and Purchased Power	279		54			(53		)
Commodity contracts subject to rate recovery	Cost of Natural Gas	5		(2		)	(4		)
Total		$	313	$	118		$	(103	)
SDG&E:
Commodity contracts subject to rate recovery	Cost of Electric Fuel and Purchased Power	$	279	$	54		$	(53	)
SoCalGas:
Commodity contracts not subject to rate recovery	Operation and Maintenance	$	—	$	—		$	1
Commodity contracts subject to rate recovery	Cost of Natural Gas	5		(2		)	(4		)
Total		$	5	$	(2	)	$	(3	)

- Definition

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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41620-113959

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579245-113959

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41638-113959

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41641-113959

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-Name Accounting Standards Codification
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-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-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

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579240-113959

+ Details

DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Millions	12 Months Ended
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Millions	Dec. 31, 2018	Feb. 21, 2019	Jun. 30, 2018
Document And Entity Information [Line Items]
Entity Registrant Name	SEMPRA ENERGY
Entity Central Index Key	0001032208
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Filer Category	Large Accelerated Filer
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding		274,039,296
Entity Public Float			$ 31,500
Trading Symbol	SRE
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
San Diego Gas and Electric Company [Member]
Document And Entity Information [Line Items]
Entity Public Float			0
Southern California Gas Company [Member]
Document And Entity Information [Line Items]
Entity Public Float			$ 0

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA (Tables)

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Prior Period Adjustments

The following table summarizes the financial statement line items that were affected by this reclassification:



SEMPRA ENERGY – RECLASSIFICATION
(Dollars in millions)
	Years ended December 31,
	2017				2016
	As previously presented		As currently presented		As previously presented		As currently presented
Consolidated Statements of Operations:
Equity earnings, before income tax	$	34	$	—	$	6	$	—
Income before income taxes and equity earnings
of certain unconsolidated subsidiaries	1,585		—		1,830		—
Income before income taxes and equity earnings of
unconsolidated entities	—		1,551		—		1,824
Equity earnings, net of income tax	42		—		78		—
Equity earnings	—		76		—		84

Schedule of Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Consolidated Balance Sheets to the sum of such amounts reported on the Consolidated Statements of Cash Flows.



RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH
(Dollars in millions)
	At December 31,
	2018		2017
Sempra Energy Consolidated:
Cash and cash equivalents	$	190	$	288
Restricted cash, current	35		62
Restricted cash, noncurrent	21		14
Total cash, cash equivalents and restricted cash on the Consolidated Statements of Cash Flows	$	246	$	364
SDG&E:
Cash and cash equivalents	$	8	$	12
Restricted cash, current	11		6
Restricted cash, noncurrent	18		11
Total cash, cash equivalents and restricted cash on the Consolidated Statements of Cash Flows	$	37	$	29

Schedule Of Receivables Collection Allowances

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



COLLECTION ALLOWANCES
(Dollars in millions)
	Years ended December 31,
	2018			2017			2016
Sempra Energy Consolidated:
Allowances for collection of receivables at January 1	$	33		$	35		$	32
Provisions for uncollectible accounts	14			16			23
Write-offs of uncollectible accounts	(17		)	(18		)	(20		)
Allowances for collection of receivables at December 31	$	30		$	33		$	35
SDG&E:
Allowances for collection of receivables at January 1	$	9		$	8		$	9
Provisions for uncollectible accounts	9			8			6
Write-offs of uncollectible accounts	(7		)	(7		)	(7		)
Allowances for collection of receivables at December 31	$	11		$	9		$	8
SoCalGas:
Allowances for collection of receivables at January 1	$	16		$	21		$	17
Provisions for uncollectible accounts	1			4			14
Write-offs of uncollectible accounts	(7		)	(9		)	(10		)
Allowances for collection of receivables at December 31	$	10		$	16		$	21

Schedule of Inventory

The components of inventories by segment are as follows:



INVENTORY BALANCES AT DECEMBER 31
(Dollars in millions)
	Natural gas				LNG				Materials and supplies				Total
	2018		2017		2018		2017		2018		2017		2018		2017
SDG&E	$	—	$	4	$	—	$	—	$	102	$	101	$	102	$	105
SoCalGas	92		75		—		—		42		49		134		124
Sempra South American Utilities	—		—		—		—		38		30		38		30
Sempra Mexico	—		—		4		7		15		2		19		9
Sempra Renewables	—		—		—		—		—		5		—		5
Sempra LNG & Midstream	3		30		—		4		—		—		3		34
Sempra Energy Consolidated	$	95	$	109	$	4	$	11	$	197	$	187	$	296	$	307

Schedule of Property, Plant and Equipment



PROPERTY, PLANT AND EQUIPMENT BY MAJOR FUNCTIONAL CATEGORY
(Dollars in millions)
	PP&E at December 31,				Depreciation rates for years ended December 31,
	2018		2017		2018		2017			2016
SDG&E:
Natural gas operations	$	2,382	$	2,186	2.44	%	2.40	%		2.40	%
Electric distribution	7,462		6,975		3.91		3.92			3.86
Electric transmission⁽¹⁾	6,222		5,626		2.76		2.71			2.66
Electric generation⁽²⁾	2,967		2,435		4.12		4.05			4.00
Other electric⁽³⁾	1,408		1,114		6.43		5.54			5.66
Construction work in progress⁽¹⁾	1,221		1,451		NA		NA			NA
Total SDG&E	21,662		19,787
SoCalGas:
Natural gas operations⁽⁴⁾	17,268		15,759		3.60		3.63			3.64
Other non-utility	34		32		5.39		5.28			6.55
Construction work in progress	836		981		NA		NA			NA
Total SoCalGas	18,138		16,772

					Estimated				Weighted-average
Other operating units and parent⁽⁵⁾:					useful lives				useful life
Land and land rights	429		416		16 to 50 years⁽⁶⁾				30
Machinery and equipment:
Utility electric distribution operations	1,977		1,751		10 to 45 years				41
Generating plants	1,051		2,242		5 to 100 years				30
LNG terminals	1,134		1,133		43 years				43
Pipelines and storage	3,413		4,408		5 to 50 years				41
Other	205		269		1 to 50 years				7
Construction work in progress	684		691		NA				NA
Other⁽⁷⁾	622		639		3 to 80 years				31
	9,515		11,549
Total Sempra Energy Consolidated	$	49,315	$	48,108

⁽¹⁾

At December 31, 2018, includes $457 million in electric transmission assets and $26 million in construction work in progress related to SDG&E’s 92-percent interest in the Southwest Powerlink transmission line, jointly owned by SDG&E with other utilities. SDG&E, and each of the other owners, holds its undivided interest as a tenant in common in the property. Each owner is responsible for its share of the project and participates in decisions concerning operations and capital expenditures. SDG&E’s share of operating expenses is included in Sempra Energy’s and SDG&E’s Consolidated Statements of Operations.


⁽²⁾	Includes capital lease assets of $1.3 billion and $757 million at December 31, 2018 and 2017, respectively.


⁽³⁾	Includes capital lease assets of $13 million and $22 million at December 31, 2018 and 2017, respectively.


⁽⁴⁾	Includes capital lease assets of $40 million and $34 million at December 31, 2018 and 2017, respectively.


⁽⁵⁾	Includes $154 million and $145 million at December 31, 2018 and 2017, respectively, of utility plant, primarily pipelines and other distribution assets at Ecogas.


⁽⁶⁾	Estimated useful lives are for land rights.


⁽⁷⁾	Includes capital lease assets of $136 million and associated leasehold improvements of $24 million at both December 31, 2018 and 2017 related to a build-to-suit lease.



DEPRECIATION EXPENSE
(Dollars in millions)
	Years ended December 31,
	2018		2017		2016
Sempra Energy Consolidated	$	1,528	$	1,422	$	1,236
SDG&E	686		621		583
SoCalGas	553		514		474



ACCUMULATED DEPRECIATION
(Dollars in millions)
	December 31,
	2018		2017
SDG&E:
Accumulated depreciation:
Electric⁽¹⁾	$	4,558	$	4,193
Natural gas	794		756
Total SDG&E	5,352		4,949
SoCalGas:
Accumulated depreciation of natural gas utility plant in service⁽²⁾	5,685		5,352
Accumulated depreciation – other non-utility	14		14
Total SoCalGas	5,699		5,366
Other operating units and parent and other:
Accumulated depreciation – other⁽³⁾	1,125		972
Accumulated depreciation of utility electric distribution operations	343		318
	1,468		1,290
Total Sempra Energy Consolidated	$	12,519	$	11,605


⁽¹⁾	Includes accumulated depreciation for capital lease assets of $48 million and $47 million at December 31, 2018 and 2017, respectively. Includes $252 million at December 31, 2018 related to SDG&E’s 92-percent interest in the Southwest Powerlink transmission line, jointly owned by SDG&E and other utilities.


⁽²⁾	Includes accumulated depreciation for capital lease assets of $37 million and $33 million at December 31, 2018 and 2017, respectively.

⁽³⁾

Includes accumulated depreciation for capital lease assets of $10 million and $7 million and for associated leasehold improvements of $3 million and $2 million at December 31, 2018 and 2017, respectively, related to a build-to-suit lease. Includes $43 million and $39 million at December 31, 2018 and 2017, respectively, of accumulated depreciation for utility plant at Ecogas.

Schedule Of Capitalized Financing Costs

Interest capitalized and AFUDC are as follows:



CAPITALIZED FINANCING COSTS
(Dollars in millions)
	Years ended December 31,
	2018		2017		2016
Sempra Energy Consolidated	$	202	$	256	$	236
SDG&E	82		85		62
SoCalGas	48		60		55

Schedule Of Goodwill

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			Total
Balance at December 31, 2016	$	749		$	1,615		$	2,364
Acquisition of business – measurement period adjustment	—			(13		)	(13		)
Foreign currency translation⁽¹⁾	46			—			46
Balance at December 31, 2017	795			1,602			2,397
Acquisition of business	38			—			38
Foreign currency translation⁽¹⁾	(62		)	—			(62		)
Balance at December 31, 2018	$	771		$	1,602		$	2,373

⁽¹⁾

We record the offset of this fluctuation to OCI.

Schedule Of Other Intangible Assets

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



OTHER INTANGIBLE ASSETS
(Dollars in millions)
	Amortization period (years)	December 31,
	Amortization period (years)	2018			2017
Development rights	50	$	—		$	322
Renewable energy transmission and consumption permit	19	154			154
Storage rights	46	—			138
O&M agreement	23	66			66
Concession permits	Indefinite	50			—
Other	10 years to indefinite	28			18
		298			698
Less accumulated amortization:
Development rights		—			(60		)
Renewable energy transmission and consumption permit		(16		)	(8		)
Storage rights		—			(28		)
O&M agreement		(3		)	—
Other		(7		)	(6		)
		(26		)	(102		)
		$	272		$	596

Schedule Of Variable Interest Entities



AMOUNTS ASSOCIATED WITH TAX EQUITY ARRANGEMENTS
(Dollars in millions)
	December 31,
	2018		2017
Cash and cash equivalents	$	7	$	23
Accounts receivable – trade, net	2		5
Inventories	—		1
Other	1		1
Total current assets	10		30
Sundry	—		2
Property, plant and equipment, net	286		1,412
Total assets	296		1,444

Accounts payable	2		42
Other	1		1
Total current liabilities	3		43
Asset retirement obligations	6		40
Deferred income taxes	7		10
Deferred credits and other	—		1
Total liabilities	16		94

Other noncontrolling interests	158		631
Net assets less other noncontrolling interests	$	122	$	719



	Years ended December 31,
	2018			2017			2016
REVENUES
Energy-related businesses	$	92		$	61		$	2
EXPENSES
Operation and maintenance	(16		)	(9		)	(1		)
Depreciation and amortization	(47		)	(32		)	—
Income before income taxes	29			20			1
Income tax expense	(18		)	(4		)	—
Net income	11			16			1
Losses attributable to noncontrolling interests⁽¹⁾	58			23			4
Earnings	$	69		$	39		$	5

⁽¹⁾Net income or loss attributable to NCI is computed using the HLBV method and is not based on ownership percentages.The Consolidated Financial Statements of Sempra Energy and SDG&E include the following amounts associated with Otay Mesa VIE. The amounts are net of eliminations of transactions between SDG&E and Otay Mesa VIE. The captions in the tables below correspond to SDG&E’s Consolidated Balance Sheets and Consolidated Statements of Operations.



AMOUNTS ASSOCIATED WITH OTAY MESA VIE
(Dollars in millions)
	December 31,
	2018		2017
Cash and cash equivalents	$	—	$	4
Restricted cash	11		6
Inventories	4		4
Other	2		1
Total current assets	17		15
Restricted cash	18		11
Property, plant and equipment, net	295		321
Total assets	$	330	$	347

Current portion of long-term debt	$	28	$	10
Fixed-price contracts and other derivatives	1		10
Other	3		5
Total current liabilities	32		25
Long-term debt	190		284
Fixed-price contracts and other derivatives	—		3
Deferred credits and other	8		7
Noncontrolling interest	100		28
Total liabilities and equity	$	330	$	347



	Years ended December 31,
	2018			2017			2016
Operating expenses
Cost of electric fuel and purchased power	$	(75	)	$	(79	)	$	(79	)
Operation and maintenance	17			17			29
Depreciation and amortization	30			28			35
Total operating expenses	(28		)	(34		)	(15		)
Operating income	28			34			15
Other income	2			2			—
Interest expense	(23		)	(22		)	(20		)
Income (loss) before income taxes/Net income (loss)	7			14			(5		)
(Earnings) losses attributable to noncontrolling interest	(7		)	(14		)	5
Earnings attributable to common shares	$	—		$	—		$	—

Schedule Of Asset Retirement Obligations

The changes in ARO are as follows:



CHANGES IN ASSET RETIREMENT OBLIGATIONS
(Dollars in millions)
	Sempra Energy Consolidated						SDG&E						SoCalGas
	2018			2017			2018			2017			2018			2017
Balance as of January 1⁽¹⁾	$	2,877		$	2,553		$	839		$	830		$	1,953		$	1,659
Accretion expense	121			109			39			39			78			66
Liabilities incurred	7			34			—			17			—			—
Deconsolidation and reclassification⁽²⁾	(61		)	—			—			—			—			—
Payments	(42		)	(63		)	(39		)	(61		)	(3		)	(2		)
Revisions⁽³⁾	71			244			35			14			35			230
Balance at December 31⁽¹⁾	$	2,973		$	2,877		$	874		$	839		$	2,063		$	1,953


⁽¹⁾	Current portion of the ARO for Sempra Energy Consolidated is included in Other Current Liabilities on the Consolidated Balance Sheets.


⁽²⁾	In 2018, we reclassified $6 million at Sempra Renewables and $8 million at Sempra LNG & Midstream to Liabilities Held for Sale, and $5 million related to TdM from Liabilities Held for Sale, and deconsolidated $52 million at Sempra Renewables, as we discuss in Note 5.

⁽³⁾

In 2017, revised estimates were primarily related to underground natural gas storage facilities and wells at SoCalGas.

Schedule Of Changes In Accumulated Other Comprehensive Income By Component

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



CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT⁽¹⁾
(Dollars in millions)
	Foreign currency translation adjustments			Financial instruments				Pension and other postretirement benefits			Total accumulated other comprehensive income (loss)
Sempra Energy Consolidated:
Balance as of December 31, 2015	$	(582	)		$	(137	)	$	(87	)	$	(806	)

OCI before reclassifications	42				(7		)	(15		)	20
Amounts reclassified from AOCI⁽²⁾	13				19			6			38
Net OCI	55				12			(9		)	58
Balance as of December 31, 2016	(527		)		(125		)	(96		)	(748		)

OCI before reclassifications	107				(4		)	—			103
Amounts reclassified from AOCI	—				7			12			19
Net OCI	107				3			12			122
Balance as of December 31, 2017	(420		)		(122		)	(84		)	(626		)
Cumulative-effect adjustment from change in accounting principle⁽³⁾	—				(3		)	—			(3		)

OCI before reclassifications	(144		)		40			(52		)	(156		)
Amounts reclassified from AOCI	—				3			18			21
Net OCI	(144		)		43			(34		)	(135		)
Balance as of December 31, 2018	$	(564	)		$	(82	)	$	(118	)	$	(764	)
SDG&E:
Balance as of December 31, 2015								$	(8	)	$	(8	)

OCI before reclassifications								(1		)	(1		)
Amounts reclassified from AOCI								1			1
Net OCI								—			—
Balance as of December 31, 2016								(8		)	(8		)

OCI before reclassifications								(1		)	(1		)
Amounts reclassified from AOCI								1			1
Net OCI								—			—
Balance as of December 31, 2017								(8		)	(8		)

OCI before reclassifications								(6		)	(6		)
Amounts reclassified from AOCI								4			4
Net OCI								(2		)	(2		)
Balance as of December 31, 2018								$	(10	)	$	(10	)
SoCalGas:
Balance as of December 31, 2015					$	(14	)	$	(5	)	$	(19	)

OCI before reclassifications					—			(4		)	(4		)
Amounts reclassified from AOCI					1			—			1
Net OCI					1			(4		)	(3		)
Balance as of December 31, 2016					(13		)	(9		)	(22		)

Amounts reclassified from AOCI					—			1			1
Net OCI					—			1			1
Balance as of December 31, 2017					(13		)	(8		)	(21		)

OCI before reclassifications					—			(1		)	(1		)
Amounts reclassified from AOCI					1			1			2
Net OCI					1			—			1
Balance as of December 31, 2018					$	(12	)	$	(8	)	$	(20	)


⁽¹⁾	All amounts are net of income tax, if subject to tax, and exclude NCI.


⁽²⁾	Total AOCI includes $20 million associated with the October 2016 sale of NCI, discussed below in “Sale of Noncontrolling Interests – Sempra Mexico – Follow-On Offerings,” which does not impact the Consolidated Statement of Comprehensive Income.

⁽³⁾

Represents impact from adoption of ASU 2017-12, which we discuss in Note 2.

Schedule Of Reclassifications Out Of Accumulated Other Comprehensive Income



RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
Details about accumulated other comprehensive income (loss) components	Amounts reclassified from accumulated other comprehensive income (loss)									Affected line item on Consolidated Statements of Operations
	Years ended December 31,
	2018			2017			2016
Sempra Energy Consolidated:
Financial instruments:
Interest rate and foreign exchange instruments⁽¹⁾	$	—		$	(4	)	$	17		Interest Expense
	(2		)	—			—			Other Income, Net
Interest rate instruments	9			—			—			Gain on Sale of Assets
Interest rate and foreign exchange instruments	7			20			15			Equity Earnings
Interest rate and foreign exchange instruments	—			—			7			Remeasurement of Equity Method Investment
Foreign exchange instruments	(1		)	(2		)	—			Revenues: Energy-Related Businesses
Commodity contracts not subject to rate recovery	—			9			(6		)	Revenues: Energy-Related Businesses
Total before income tax	13			23			33
	(4		)	(6		)	(6		)	Income Tax Expense
Net of income tax	9			17			27
	(6		)	(10		)	(15		)	Earnings Attributable to Noncontrolling Interests
	$	3		$	7		$	12
Pension and other postretirement benefits:
Amortization of actuarial loss⁽²⁾	$	12		$	10		$	10		Other Income, Net
Amortization of prior service cost⁽²⁾	2			1			1			Other Income, Net
Settlements⁽²⁾	12			8			—			Other Income, Net
Total before income tax	26			19			11
	(8		)	(7		)	(5		)	Income Tax Expense
Net of income tax	$	18		$	12		$	6

Total reclassifications for the period, net of tax	$	21		$	19		$	18
SDG&E:
Financial instruments:
Interest rate instruments⁽¹⁾	$	7		$	13		$	12		Interest Expense
	(7		)	(13		)	(12		)	(Earnings) Losses Attributable to Noncontrolling Interest
	$	—		$	—		$	—
Pension and other postretirement benefits:
Amortization of actuarial loss⁽²⁾	$	1		$	1		$	1		Other Income, Net
Settlements⁽²⁾	4			—			—			Other Income, Net
Total before income tax	5			1			1
	(1		)	—			—			Income Tax Expense
Net of income tax	$	4		$	1		$	1

Total reclassifications for the period, net of tax	$	4		$	1		$	1
SoCalGas:
Financial instruments:
Interest rate instruments	$	1		$	—		$	1		Interest Expense
Pension and other postretirement benefits:
Amortization of prior service cost⁽²⁾	$	1		$	1		$	—		Other Income, Net

Total reclassifications for the period, net of tax	$	2		$	1		$	1


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

⁽²⁾

Amounts are included in the computation of net periodic benefit cost (see “Net Periodic Benefit Cost” in Note 9).

Schedule Of Noncontrolling Interests

The following table provides information about noncontrolling ownership interests held by others (not including preferred shareholders) recorded in Other Noncontrolling Interests in Total Equity on Sempra Energy’s Consolidated Balance Sheets:



OTHER NONCONTROLLING INTERESTS
(Dollars in millions)
	Percent ownership held by noncontrolling interests				Equity (deficit) held by noncontrolling interests
	December 31,				December 31,
	2018		2017		2018			2017
SDG&E:
Otay Mesa VIE	100	%	100	%	$	100		$	28
Sempra South American Utilities:
Chilquinta Energía subsidiaries⁽¹⁾	19.7 - 43.4		22.9 - 43.4		23			24
Luz del Sur	16.4		16.4		193			189
Tecsur	9.8		9.8		4			4
Sempra Mexico:
IEnova⁽²⁾⁽³⁾	33.5		33.6		1,605			1,532
Sempra Renewables:
Tax equity arrangements – wind⁽⁴⁾	NA		NA		158			181
Tax equity arrangements – solar⁽⁴⁾	—		NA		—			450
PXiSE Energy Solutions, LLC	11.1		—		1			—
Sempra LNG & Midstream:
Bay Gas	9.1		9.1		18			28
Liberty Gas Storage, LLC	24.6		24.6		(12		)	14
Total Sempra Energy					$	2,090		$	2,450


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


⁽²⁾	IEnova has a subsidiary with a 10-percent NCI held by others. The equity held by NCI is negligible at both December 31, 2018 and 2017.


⁽³⁾	IEnova has a subsidiary with a 49-percent NCI held by others. The equity held by NCI is $13 million at December 31, 2018.

⁽⁴⁾

Net income or loss attributable to NCI is computed using the HLBV method and is not based on ownership percentages.

Schedule of Related Party Transactions

We summarize amounts due from and to unconsolidated affiliates at Sempra Energy Consolidated, SDG&E and SoCalGas in the following table.



AMOUNTS DUE FROM (TO) UNCONSOLIDATED AFFILIATES
(Dollars in millions)
	December 31,
	2018			2017
Sempra Energy Consolidated:
Total due from various unconsolidated affiliates – current	$	39		$	37

Sempra South American Utilities⁽¹⁾:
Eletrans – 4% Note⁽²⁾	$	43		$	103
Other related party receivables	1			1
Sempra Mexico⁽¹⁾:
IMG – Note due March 15, 2022⁽³⁾	641			487
Energía Sierra Juárez – Note⁽⁴⁾	3			7
Total due from unconsolidated affiliates – noncurrent	$	688		$	598

Total due to various unconsolidated affiliates – current	$	(10	)	$	(7	)

Sempra Mexico⁽¹⁾:
Total due to unconsolidated affiliates – noncurrent – TAG – Note due December 20, 2021⁽⁵⁾	$	(37	)	$	(35	)
SDG&E:
Sempra Energy	$	(43	)	$	(30	)
SoCalGas	(6		)	(4		)
Various affiliates	(12		)	(6		)
Total due to unconsolidated affiliates – current	$	(61	)	$	(40	)

Income taxes due from Sempra Energy⁽⁶⁾	$	5		$	27
SoCalGas:
SDG&E	$	6		$	4
Various affiliates	1			—
Total due from unconsolidated affiliates – current	$	7		$	4

Total due to unconsolidated affiliates – current – Sempra Energy	$	(34	)	$	(35	)

Income taxes due (to) from Sempra Energy⁽⁶⁾	$	(4	)	$	10


⁽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, comprising JVs of Chilquinta Energía.


⁽³⁾	Mexican peso-denominated revolving line of credit for up to 14.2 billion Mexican pesos or approximately $721 million U.S. dollar-equivalent, at a variable interest rate based on the 91-day Interbank Equilibrium Interest Rate plus 220 bps (10.84 percent at December 31, 2018), to finance construction of the natural gas marine pipeline.


⁽⁴⁾	U.S. dollar-denominated loan, at a variable interest rate based on the 30-day LIBOR plus 637.5 bps (8.89 percent at December 31, 2018) with no stated maturity date, to finance the first phase of the Energía Sierra Juárez wind project, which is a joint venture of IEnova.


⁽⁵⁾	U.S. dollar-denominated loan, at a variable interest rate based on 6-month LIBOR plus 290 bps (5.77 percent at December 31, 2018).


⁽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.

The following table summarizes revenues and cost of sales from unconsolidated affiliates.



REVENUES AND COST OF SALES FROM UNCONSOLIDATED AFFILIATES
(Dollars in millions)
	Years ended December 31,
	2018		2017		2016
Revenues:
Sempra Energy Consolidated	$	64	$	43	$	25
SDG&E	5		8		7
SoCalGas	64		74		76
Cost of Sales:
Sempra Energy Consolidated	$	46	$	47	$	72
SDG&E	73		71		64

Schedule Of Other Income (Expense)

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



OTHER INCOME, NET
(Dollars in millions)
	Years ended December 31,
	2018			2017⁽¹⁾			2016⁽¹⁾
Sempra Energy Consolidated:
Allowance for equity funds used during construction	$	98		$	168		$	116
Investment (losses) gains⁽²⁾	(6		)	56			23
Gains (losses) on interest rate and foreign exchange instruments, net	7			47			(32		)
Foreign currency transaction losses⁽³⁾	(5		)	(35		)	(1		)
Non-service component of net periodic benefit (cost) credit	(37		)	(21		)	6
Electrical infrastructure relocation income	7			3			10
Interest on regulatory balancing accounts, net	2			3			4
Sundry, net	6			12			12
Total	$	72		$	233		$	138
SDG&E:
Allowance for equity funds used during construction	$	61		$	63		$	46
Non-service component of net periodic benefit (cost) credit	(6		)	4			14
Interest on regulatory balancing accounts, net	4			3			3
Sundry, net	(3		)	—			1
Total	$	56		$	70		$	64
SoCalGas:
Allowance for equity funds used during construction	$	36		$	44		$	40
Non-service component of net periodic benefit (cost) credit	(10		)	(5		)	6
Interest on regulatory balancing accounts, net	(2		)	—			1
Sundry, net	(9		)	(8		)	(9		)
Total	$	15		$	31		$	38


⁽¹⁾	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2.


⁽²⁾	Represents investment (losses) gains on dedicated assets in support of our executive retirement and deferred compensation plans. These amounts are partially offset by corresponding changes in compensation expense related to the plans, recorded in O&M on the Consolidated Statements of Operations.

⁽³⁾

Includes losses of $3 million and $35 million in 2018 and 2017, respectively, from translation to U.S. dollars of a Mexican peso-denominated loan to the IMG JV, which are offset by corresponding amounts included in Equity Earnings on the Consolidated Statements of Operations.

DERIVATIVE FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2018

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 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 OCI (cash flow hedge), on the balance sheet (fair value hedges and regulatory offsets), or recognized in earnings. We classify cash flows from the principal settlements of cross-currency swaps that hedge exposure related to Mexican peso-denominated debt as financing activities and settlements of other derivative instruments as operating activities on the 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 natural gas and electricity derivatives, 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 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 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 Consolidated Statements of Operations.

▪

Sempra Mexico, Sempra LNG & Midstream and Sempra Renewables may use natural gas and electricity derivatives, as appropriate, to optimize the earnings of their assets which support the following businesses: LNG, natural gas transportation 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 Consolidated Statements of Operations. Certain of these derivatives may also be designated as cash flow hedges. Sempra Mexico may also use natural gas

energy derivatives with the objective of managing price risk and lowering natural gas prices at its distribution operations. These derivatives, which are recorded as commodity costs that are offset by regulatory account balances and recovered in rates, are recognized in Cost of Natural Gas on the Consolidated Statements of Operations.


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

The following table summarizes net energy derivative volumes.



NET ENERGY DERIVATIVE VOLUMES
(Quantities in millions)
		December 31,
Commodity	Unit of measure	2018	2017
Sempra Energy Consolidated:
Natural gas	MMBtu	35	46
Electricity	MWh	2	3
Congestion revenue rights	MWh	52	59
SDG&E:
Natural gas	MMBtu	33	39
Electricity	MWh	2	3
Congestion revenue rights	MWh	52	59

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. The California Utilities, as well as Sempra Energy and its other subsidiaries and JVs, periodically enter into interest rate derivative agreements intended to moderate our exposure to interest rates and to lower our overall costs of borrowing. We may 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. Separately, Otay Mesa VIE has entered into interest rate swap agreements, designated as cash flow hedges, to moderate its exposure to interest rate changes.

The following table presents the net notional amounts of our interest rate derivatives, excluding JVs.



INTEREST RATE DERIVATIVES
(Dollars in millions)
	December 31, 2018			December 31, 2017
	Notional debt		Maturities	Notional debt		Maturities
Sempra Energy Consolidated:
Cash flow hedges⁽¹⁾⁽²⁾	$	594	2019-2032	$	861	2018-2032
SDG&E:
Cash flow hedge⁽¹⁾⁽²⁾	142		2019	295		2018-2019


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


⁽²⁾	In December 2018, OMEC LLC entered into new floating-to-fixed interest rate swaps with notional amounts of $159 million effective April 30, 2019 through October 31, 2019, and $142 million effective October 31, 2019 through October 31, 2023.

FOREIGN CURRENCY DERIVATIVES

We utilize cross-currency swaps to hedge exposure related to Mexican peso-denominated debt at our Mexican subsidiaries and JVs. 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 JVs 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 JVs, 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; however, we generally do not hedge our deferred income tax assets and liabilities or for inflation. In addition, Sempra South American Utilities and its JVs may use foreign currency derivatives to manage foreign currency rate risk.

The following table presents the net notional amounts of our foreign currency derivatives, excluding JVs.



FOREIGN CURRENCY DERIVATIVES
(Dollars in millions)
	December 31, 2018			December 31, 2017
	Notional amount		Maturities	Notional amount		Maturities
Sempra Energy Consolidated:
Cross-currency swaps	$	306	2019-2023	$	408	2018-2023
Other foreign currency derivatives	1,158		2019-2020	345		2018-2019

FINANCIAL STATEMENT PRESENTATION

The 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 Consolidated Balance Sheets at December 31, 2018 and 2017, including the amount of cash collateral receivables that were not offset, as the cash collateral was in excess of liability positions.



DERIVATIVE INSTRUMENTS ON THE CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
	December 31, 2018
	Current assets: Other ⁽¹⁾			Other assets: Sundry			Current liabilities: Other			Deferred credits and other liabilities: Deferred credits and other
Sempra Energy Consolidated:
Derivatives designated as hedging instruments:
Interest rate and foreign exchange instruments⁽²⁾	$	2		$	—		$	(3	)	$	(147	)
Derivatives not designated as hedging instruments:
Commodity contracts not subject to rate recovery	153			7			(164		)	(6		)
Associated offsetting commodity contracts	(133		)	(3		)	133			3
Commodity contracts subject to rate recovery	64			233			(42		)	(72		)
Associated offsetting commodity contracts	(6		)	(2		)	6			2
Associated offsetting cash collateral	—			—			—			2
Net amounts presented on the balance sheet	80			235			(70		)	(218		)
Additional cash collateral for commodity contracts not subject to rate recovery	19			—			—			—
Additional cash collateral for commodity contracts subject to rate recovery	33			—			—			—
Total⁽³⁾	$	132		$	235		$	(70	)	$	(218	)
SDG&E:
Derivatives designated as hedging instruments:
Interest rate instruments⁽²⁾	$	—		$	—		$	(1	)	$	—
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	60			233			(37		)	(72		)
Associated offsetting commodity contracts	(6		)	(2		)	6			2
Associated offsetting cash collateral	—			—			—			2
Net amounts presented on the balance sheet	54			231			(32		)	(68		)
Additional cash collateral for commodity contracts subject to rate recovery	28			—			—			—
Total⁽³⁾	$	82		$	231		$	(32	)	$	(68	)
SoCalGas:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	$	4		$	—		$	(5	)	$	—
Net amounts presented on the balance sheet	4			—			(5		)	—
Additional cash collateral for commodity contracts subject to rate recovery	5			—			—			—
Total	$	9		$	—		$	(5	)	$	—


⁽¹⁾	Included in Current Assets: Fixed-Price Contracts and Other Derivatives for SDG&E.


⁽²⁾	Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE.


⁽³⁾	Normal purchase contracts previously measured at fair value are excluded.



DERIVATIVE INSTRUMENTS ON THE CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
	December 31, 2017
	Current assets: Other ⁽¹⁾			Other assets: Sundry			Current liabilities: Other			Deferred credits and other liabilities: Deferred credits and other
Sempra Energy Consolidated:
Derivatives designated as hedging instruments:
Interest rate and foreign exchange instruments⁽²⁾	$	5		$	2		$	(51	)	$	(165	)
Derivatives not designated as hedging instruments:
Foreign exchange instruments	—			—			(1		)	—
Commodity contracts not subject to rate recovery	81			8			(72		)	(6		)
Associated offsetting commodity contracts	(67		)	(5		)	67			5
Commodity contracts subject to rate recovery	28			101			(65		)	(120		)
Associated offsetting commodity contracts	—			(1		)	—			1
Associated offsetting cash collateral	—			—			19			4
Net amounts presented on the balance sheet	47			105			(103		)	(281		)
Additional cash collateral for commodity contracts not subject to rate recovery	2			—			—			—
Additional cash collateral for commodity contracts subject to rate recovery	17			—			—			—
Total⁽³⁾	$	66		$	105		$	(103	)	$	(281	)
SDG&E:
Derivatives designated as hedging instruments:
Interest rate instruments⁽²⁾	$	—		$	—		$	(10	)	$	(3	)
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	26			101			(63		)	(120		)
Associated offsetting commodity contracts	—			(1		)	—			1
Associated offsetting cash collateral	—			—			19			4
Net amounts presented on the balance sheet	26			100			(54		)	(118		)
Additional cash collateral for commodity contracts subject to rate recovery	16			—			—			—
Total⁽³⁾	$	42		$	100		$	(54	)	$	(118	)
SoCalGas:
Derivatives not designated as hedging instruments:
Commodity contracts subject to rate recovery	$	2		$	—		$	(2	)	$	—
Net amounts presented on the balance sheet	2			—			(2		)	—
Additional cash collateral for commodity contracts subject to rate recovery	1			—			—			—
Total	$	3		$	—		$	(2	)	$	—


⁽¹⁾	Included in Current Assets: Fixed-Price Contracts and Other Derivatives for SDG&E.


⁽²⁾	Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE.


⁽³⁾	Normal purchase contracts previously measured at fair value are excluded.



FAIR VALUE HEDGE IMPACTS
(Dollars in millions)
		Pretax gain (loss) on derivatives recognized in earnings
	Location	Year ended December 31, 2016
Sempra Energy Consolidated:
Interest rate instruments	Interest Expense	$	3
Interest rate instruments	Other Income, Net	(2		)
Total		$	1

The table below includes the effects of derivative instruments designated as cash flow hedges on the Consolidated Statements of Operations and in OCI and AOCI.



CASH FLOW HEDGE IMPACTS
(Dollars in millions)
	Pretax gain (loss) recognized in OCI										Pretax gain (loss) reclassified from AOCI into earnings
	Years ended December 31,										Years ended December 31,
	2018			2017			2016			Location	2018			2017			2016
Sempra Energy Consolidated:
Interest rate and foreign exchange instruments⁽¹⁾	$	31		$	19		$	(8	)	Interest Expense	$	—		$	4		$	(17	)
										Other Income, Net	2			—			—
Interest rate instruments	—			—			—			Gain on Sale of Assets	(9		)	—			—
Interest rate and foreign exchange instruments	41			(34		)	(4		)	Equity Earnings	(7		)	(20		)	(15		)
Interest rate and foreign exchange instruments	—			—			—			Remeasurement of Equity Method Investment	—			—			(7		)
Foreign exchange instruments	(4		)	4			4			Revenues: Energy- Related Businesses	1			2			—
Commodity contracts not subject to rate recovery	—			3			(13		)	Revenues: Energy- Related Businesses	—			(9		)	6
Total	$	68		$	(8	)	$	(21	)		$	(13	)	$	(23	)	$	(33	)
SDG&E:
Interest rate instruments⁽¹⁾	$	1		$	(2	)	$	(2	)	Interest Expense	$	(7	)	$	(13	)	$	(12	)
SoCalGas:
Interest rate instruments	$	—		$	—		$	—		Interest Expense	$	(1	)	$	—		$	(1	)


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

For Sempra Energy Consolidated, we expect that net gains of $22 million, which are net of income tax expense, that are currently recorded in AOCI (including $2 million of losses in NCI related to Otay Mesa VIE at SDG&E) related to cash flow hedges will be reclassified into earnings during the next 12 months as the hedged items affect earnings. SoCalGas expects that $1 million of 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 12 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 December 31, 2018 is approximately 13 years and less than 1 year 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 15 years.

The following table summarizes the effects of derivative instruments not designated as hedging instruments on the Consolidated Statements of Operations.



UNDESIGNATED DERIVATIVE IMPACTS
(Dollars in millions)
		Pretax gain (loss) on derivatives recognized in earnings
		Years ended December 31,
	Location	2018		2017			2016
Sempra Energy Consolidated:
Foreign exchange instruments	Other Income, Net	$	3	$	49		$	(32	)
Foreign exchange instruments	Equity Earnings	—		1			3
Commodity contracts not subject to rate recovery	Revenues: Energy-Related Businesses	26		16			(18		)
Commodity contracts not subject to rate recovery	Operation and Maintenance	—		—			1
Commodity contracts subject to rate recovery	Cost of Electric Fuel and Purchased Power	279		54			(53		)
Commodity contracts subject to rate recovery	Cost of Natural Gas	5		(2		)	(4		)
Total		$	313	$	118		$	(103	)
SDG&E:
Commodity contracts subject to rate recovery	Cost of Electric Fuel and Purchased Power	$	279	$	54		$	(53	)
SoCalGas:
Commodity contracts not subject to rate recovery	Operation and Maintenance	$	—	$	—		$	1
Commodity contracts subject to rate recovery	Cost of Natural Gas	5		(2		)	(4		)
Total		$	5	$	(2	)	$	(3	)

CONTINGENT FEATURES

For Sempra Energy Consolidated, SDG&E and SoCalGas, 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 at December 31, 2018 and 2017 was $16 million and $6 million, respectively. At December 31, 2018, if the credit ratings of Sempra Energy were reduced below investment grade, $20 million of additional assets could be required to be posted as collateral for these derivative contracts. For SDG&E, the total fair value of this group of derivative instruments in a net liability position at December 31, 2017 was $1 million. For SoCalGas, the total fair value of this group of derivative instruments in a net liability position at December 31, 2018 was $5 million. At December 31, 2018, if the credit ratings of SoCalGas 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.

SAN ONOFRE NUCLEAR GENERATING STATION (SONGS) - NUCLEAR INSURANCE (Details) - San Diego Gas and Electric Company [Member] - USD ($) $ in Millions	Dec. 31, 2018	Apr. 05, 2018	Jan. 10, 2018	Jan. 09, 2018	Jan. 05, 2018	Jan. 04, 2018
Public Utilities, General Disclosures [Line Items]
Maximum required nuclear liability insurance available	$ 450.0				$ 100.0	$ 450.0
Maximum secondary financial protection available	110.0
Maximum nuclear liability loss coverage per incident	560.0
Federal nuclear property damage insurance, minimum required	1,060.0		$ 50.0	$ 1,060.0
Maximum premium assessment under nuclear property damage insurance	10.4
Federal Nuclear Property Damage Insurance	1,500.0
Spent Nuclear Fuel Storage Insurance		$ 500.0
Maximum nuclear property insurance terrorism coverage	$ 3,240.0

SEMPRA ENERGY - SHAREHOLDERS' EQUITY AND EARNINGS PER SHARE SEMPRA ENERGY COMMON STOCK OFFERINGS (Details) - USD ($) $ / shares in Units, $ in Millions					3 Months Ended		6 Months Ended	12 Months Ended
	Feb. 26, 2019	Jul. 13, 2018	Mar. 08, 2018	Jan. 09, 2018	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Issuances of common stock, net								$ 2,272	$ 47	$ 51
Common Stock [Member]
Shares issued (in shares)		11,212,500	8,556,630	26,869,158	7,651,671	8,556,630
Public Offering [Member] \| Common Stock [Member]
Shares issued (in shares)		9,750,000		23,364,486
Price of shares issued (in dollars per share)		$ 113.75		$ 107.00
Price of shares issued net of underwriting discount (in dollars per share)		$ 111.87		$ 105.07
Over-Allotment Option [Member] \| Common Stock [Member]
Shares issued (in shares)		1,462,500		3,504,672
Issuances of common stock, net		$ 164		$ 367
Underwriting discount				$ 8
Settlement of Forward Sale Contracts [Member] \| Common Stock [Member]
Issuances of common stock, net			$ 900		$ 800	$ 900
Underwriting discount		$ 3			$ 14	$ 16
Subsequent Event [Member] \| Settlement of Forward Sale Contracts [Member] \| Common Stock [Member]
Shares issuable under forward contracts	16,906,185
Minimum [Member] \| Settlement of Forward Sale Contracts [Member] \| Common Stock [Member]
Forward sales price (in usd per share)							$ 104.53
Maximum [Member] \| Settlement of Forward Sale Contracts [Member] \| Common Stock [Member]
Forward sales price (in usd per share)							$ 105.18

DERIVATIVE FINANCIAL INSTRUMENTS - INCOME STATEMENT (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative recognized in earnings	$ 10	$ (7)	$ (21)
Designated as Hedging Instrument [Member] \| Fair Value Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative recognized in earnings			1
Designated as Hedging Instrument [Member] \| Fair Value Hedging [Member] \| Interest Expense [Member] \| Interest rate instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative recognized in earnings			3
Designated as Hedging Instrument [Member] \| Fair Value Hedging [Member] \| Other Income [Member] \| Interest rate instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative recognized in earnings			(2)
Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivative recognized in OCI	68	(8)	(21)
Pretax gain (loss) reclassified from AOCI into earnings	(13)	(23)	(33)
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) on derivative recognized in OCI	31	19	(8)
Pretax gain (loss) reclassified from AOCI into earnings	0	4	(17)
Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member] \| Other Income [Member] \| Interest rate and foreign exchange instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) reclassified from AOCI into earnings	2	0	0
Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member] \| Gain on Sale of Assets [Member] \| Interest rate instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivative recognized in OCI	0	0	0
Pretax gain (loss) reclassified from AOCI into earnings	(9)	0	0
Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member] \| Equity Earnings [Member] \| Interest rate and foreign exchange instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivative recognized in OCI	41	(34)	(4)
Pretax gain (loss) reclassified from AOCI into earnings	(7)	(20)	(15)
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) on derivative recognized in OCI	0	0	0
Pretax gain (loss) reclassified from AOCI into earnings	0	0	(7)
Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member] \| Revenues: Energy-Related Businesses [Member] \| Commodity Contracts Not Subject To Rate Recovery [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivative recognized in OCI	0	3	(13)
Pretax gain (loss) reclassified from AOCI into earnings	0	(9)	6
Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member] \| Revenues: Energy-Related Businesses [Member] \| Foreign exchange instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivative recognized in OCI	(4)	4	4
Pretax gain (loss) reclassified from AOCI into earnings	1	2	0
Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative recognized in earnings	313	118	(103)
Not Designated as Hedging Instrument [Member] \| Other Income [Member] \| Foreign exchange instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative recognized in earnings	3	49	(32)
Not Designated as Hedging Instrument [Member] \| Equity Earnings [Member] \| Foreign exchange instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative recognized in earnings	0	1	3
Not Designated as Hedging Instrument [Member] \| Revenues: Energy-Related Businesses [Member] \| Commodity Contracts Not Subject To Rate Recovery [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative recognized in earnings	26	16	(18)
Not Designated as Hedging Instrument [Member] \| Operation And Maintenance [Member] \| Commodity Contracts Not Subject To Rate Recovery [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative recognized in earnings	0	0	1
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]
Gain (loss) on derivative recognized in earnings	279	54	(53)
Not Designated as Hedging Instrument [Member] \| Cost of Natural Gas [Member] \| Commodity contracts subject to rate recovery [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative recognized in earnings	5	(2)	(4)
San Diego Gas and Electric Company [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative recognized in earnings	3	2	3
San Diego Gas and Electric Company [Member] \| Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member] \| Interest Expense [Member] \| Interest rate instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivative recognized in OCI	1	(2)	(2)
Pretax gain (loss) reclassified from AOCI into earnings	(7)	(13)	(12)
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]
Gain (loss) on derivative recognized in earnings	279	54	(53)
Southern California Gas Company [Member] \| Designated as Hedging Instrument [Member] \| Cash Flow Hedging [Member] \| Interest Expense [Member] \| Interest rate instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gain (loss) on derivative recognized in OCI	0	0	0
Pretax gain (loss) reclassified from AOCI into earnings	(1)	0	(1)
Southern California Gas Company [Member] \| Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative recognized in earnings	5	(2)	(3)
Southern California Gas Company [Member] \| Not Designated as Hedging Instrument [Member] \| Operation And Maintenance [Member] \| Commodity Contracts Not Subject To Rate Recovery [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative recognized in earnings	0	0	1
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]
Gain (loss) on derivative recognized in earnings	$ 5	$ (2)	$ (4)

REVENUES - RECEIVABLES FROM REVENUES FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Millions	Dec. 31, 2018	Jan. 01, 2018
Contract with Customer, Asset [Line Items]
Receivables from revenues from contracts with customers	$ 1,354	$ 1,212
Accounts receivable – trade, net [Member]
Contract with Customer, Asset [Line Items]
Receivables from revenues from contracts with customers	1,333	1,194
Accounts receivable – other, net [Member]
Contract with Customer, Asset [Line Items]
Receivables from revenues from contracts with customers	11	10
Due from unconsolidated affiliates – current [Member]
Contract with Customer, Asset [Line Items]
Receivables from revenues from contracts with customers	4	8
Assets held-for-sale [Member]
Contract with Customer, Asset [Line Items]
Receivables from revenues from contracts with customers	6	0
San Diego Gas and Electric Company [Member]
Contract with Customer, Asset [Line Items]
Receivables from revenues from contracts with customers	377	368
San Diego Gas and Electric Company [Member] \| Accounts receivable – trade, net [Member]
Contract with Customer, Asset [Line Items]
Receivables from revenues from contracts with customers	368	362
San Diego Gas and Electric Company [Member] \| Accounts receivable – other, net [Member]
Contract with Customer, Asset [Line Items]
Receivables from revenues from contracts with customers	6	3
San Diego Gas and Electric Company [Member] \| Due from unconsolidated affiliates – current [Member]
Contract with Customer, Asset [Line Items]
Receivables from revenues from contracts with customers	3	3
Southern California Gas Company [Member]
Contract with Customer, Asset [Line Items]
Receivables from revenues from contracts with customers	639	524
Southern California Gas Company [Member] \| Accounts receivable – trade, net [Member]
Contract with Customer, Asset [Line Items]
Receivables from revenues from contracts with customers	634	517
Southern California Gas Company [Member] \| Accounts receivable – other, net [Member]
Contract with Customer, Asset [Line Items]
Receivables from revenues from contracts with customers	$ 5	$ 7

DEBT AND CREDIT FACILITIES - CALLABLE LONG-TERM DEBT (Details) $ in Millions	Dec. 31, 2018 USD ($)
Schedule Of Callable Long-term Debt [Line Items]
Callable long-term debt, not subject to make-whole provisions	$ 976
Callable long-term debt, subject to make-whole provisions	18,254
San Diego Gas and Electric Company [Member]
Schedule Of Callable Long-term Debt [Line Items]
Callable long-term debt, not subject to make-whole provisions	251
Callable long-term debt, subject to make-whole provisions	4,525
Southern California Gas Company [Member]
Schedule Of Callable Long-term Debt [Line Items]
Callable long-term debt, not subject to make-whole provisions	4
Callable long-term debt, subject to make-whole provisions	3,455
Other Sempra Energy [Member]
Schedule Of Callable Long-term Debt [Line Items]
Callable long-term debt, not subject to make-whole provisions	721
Callable long-term debt, subject to make-whole provisions	$ 10,274

COMMITMENTS AND CONTINGENCIES - OPERATING LEASES (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating Leases, Annual Rent Escalation [Abstract]
Minimum annual rent escalation	2.00%
Maximum annual rent escalation	5.00%
Operating Leases, Rent Expense, Net [Abstract]
Rent expense	$ 123	$ 109	$ 77
Future minimum lease payments
2019	79
2020	56
2021	54
2022	51
2023	44
Thereafter	259
Total	543
Future estimated rental payments
2019	12
2020	12
2021	13
2022	13
2023	13
Thereafter	44
Total	107
Total future rental commitments
2019	91
2020	68
2021	67
2022	64
2023	57
Thereafter	303
Total	650
Utility Subsidiaries [Member]
Operating Leases, Annual Rent Escalation [Abstract]
Aggregate maximum lease limit	201
Lease limit utilized	$ 130
San Diego Gas and Electric Company [Member]
Operating Leases, Annual Rent Escalation [Abstract]
Minimum annual rent escalation	2.00%
Maximum annual rent escalation	5.00%
Operating Leases, Rent Expense, Net [Abstract]
Rent expense	$ 27	28	28
Future minimum lease payments
2019	23
2020	22
2021	22
2022	21
2023	17
Thereafter	48
Total	153
Future estimated rental payments
2019	2
2020	2
2021	2
2022	2
2023	2
Thereafter	7
Total	17
Total future rental commitments
2019	25
2020	24
2021	24
2022	23
2023	19
Thereafter	55
Total	$ 170
Southern California Gas Company [Member]
Operating Leases, Annual Rent Escalation [Abstract]
Minimum annual rent escalation	2.00%
Maximum annual rent escalation	5.00%
Operating Leases, Rent Expense, Net [Abstract]
Rent expense	$ 41	$ 43	$ 38
Future minimum lease payments
2019	26
2020	22
2021	21
2022	20
2023	16
Thereafter	28
Total	133
Future estimated rental payments
2019	10
2020	10
2021	11
2022	11
2023	11
Thereafter	37
Total	90
Total future rental commitments
2019	36
2020	32
2021	32
2022	31
2023	27
Thereafter	65
Total	$ 223

SHARE-BASED COMPENSATION - RSAs AND RSUs (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended			60 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Maximum Performance Based RSU Target Performance Conditions Exceeded For Awards Granted during or after 2014	100.00%			100.00%
Share-Based Compensation, Restricted Stock Awards And Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk-free rate of return	2.00%	1.50%	1.30%
Stock price volatility	17.00%	17.00%	16.00%
Share-Based Compensation, Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Equity instruments other than options, vested in the period, fair value	$ 32	$ 45	$ 46
Nonvested awards, compensation cost not yet recognized	$ 24			$ 24
Weighted average period over which unrecognized compensation cost will be recognized	1 year 9 months 18 days
Share-Based Compensation, Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Granted (in shares)				0
Equity instruments other than options, vested in the period, fair value			$ 0
Share-Based Compensation, Performance Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested, beginning of period (in shares)	1,701,617
Granted (in shares)	358,363
Vested (in shares)	(157,745)
Forfeited (in shares)	(660,066)
Nonvested, end of period (in shares)	1,242,169	1,701,617		1,242,169
Weighted average grant date fair value, beginning of period (in dollars per share)	$ 105.84
Weighted average grant date fair value, granted (in dollars per share)	105.03	$ 110.54	$ 100.37
Weighted average grant date fair value, vested (in dollars per share)	99.42
Weighted average grant date fair value, forfeited (in dollars per share)	106.45
Weighted average grant date fair value, end of period (in dollars per share)	$ 106.11	$ 105.84		$ 106.11
Expected to vest (in shares)	1,211,529			1,211,529
Weighted average grant date fair value, expected to vest (in dollars per share)	$ 105.47			$ 105.47
Share-Based Compensation, Service Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested, beginning of period (in shares)	285,895
Granted (in shares)	288,474
Vested (in shares)	(163,609)
Forfeited (in shares)	(8,399)
Nonvested, end of period (in shares)	402,361	285,895		402,361
Weighted average grant date fair value, beginning of period (in dollars per share)	$ 98.81
Weighted average grant date fair value, granted (in dollars per share)	107.60	$ 101.88	$ 93.59
Weighted average grant date fair value, vested (in dollars per share)	100.60
Weighted average grant date fair value, forfeited (in dollars per share)	103.32
Weighted average grant date fair value, end of period (in dollars per share)	$ 105.01	$ 98.81		$ 105.01
Expected to vest (in shares)	396,358			396,358
Weighted average grant date fair value, expected to vest (in dollars per share)	$ 104.26			$ 104.26

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Net income

$ 1,126

$ 351

^[1]

$ 1,519

^[1]

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Total other comprehensive (loss) income

(133)

142

Preferred dividends of subsidiary

(1)

^[1]

(1)

^[1]

Pretax amount [Member]

Net income

1,146

1,533

1,760

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Foreign currency translation adjustments

(144)

107

Financial instruments

(6)

Pension and other postretirement benefits

(38)

(13)

Total other comprehensive (loss) income

(118)

129

Comprehensive income

1,028

1,662

1,783

Preferred dividends of subsidiary

(1)

Total comprehensive income, after preferred dividends of subsidiaries

1,027

1,661

1,782

Income tax (expense) benefit [Member]

Net income

(96)

(1,276)

(389)

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Foreign currency translation adjustments

Financial instruments

(21)

Pension and other postretirement benefits

(8)

Total other comprehensive (loss) income

(17)

(7)

Comprehensive income

(113)

(1,283)

(374)

Preferred dividends of subsidiary

Total comprehensive income, after preferred dividends of subsidiaries

(113)

(1,283)

(374)

Net-of-tax amount [Member]

Net income

1,050

257

1,371

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Foreign currency translation adjustments

(144)

107

Financial instruments

Pension and other postretirement benefits

(34)

(9)

Total other comprehensive (loss) income

(135)

122

Comprehensive income

915

379

1,409

Preferred dividends of subsidiary

(1)

Total comprehensive income, after preferred dividends of subsidiaries

914

378

1,408

Noncontrolling interests (after-tax) [Member]

Net income

148

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Foreign currency translation adjustments

(11)

(3)

Financial instruments

Pension and other postretirement benefits

Total other comprehensive (loss) income

Comprehensive income

114

162

Preferred dividends of subsidiary

Total comprehensive income, after preferred dividends of subsidiaries

114

162

Total [Member]

Net income

1,126

351

1,519

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Foreign currency translation adjustments

(155)

115

Financial instruments

Pension and other postretirement benefits

(34)

(9)

Total other comprehensive (loss) income

(133)

142

Comprehensive income

993

493

1,571

Preferred dividends of subsidiary

(1)

Total comprehensive income, after preferred dividends of subsidiaries

992

492

1,570

San Diego Gas and Electric Company [Member]

Net income

676

421

^[1]

565

^[1]

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Total other comprehensive (loss) income

San Diego Gas and Electric Company [Member] | Pretax amount [Member]

Net income

842

562

850

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Financial instruments

Pension and other postretirement benefits

(2)

(1)

Total other comprehensive (loss) income

(2)

(1)

Comprehensive income

840

561

850

San Diego Gas and Electric Company [Member] | Income tax (expense) benefit [Member]

Net income

(173)

(155)

(280)

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Financial instruments

Pension and other postretirement benefits

Total other comprehensive (loss) income

Comprehensive income

(173)

(154)

(280)

San Diego Gas and Electric Company [Member] | Net-of-tax amount [Member]

Net income

669

407

570

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Financial instruments

Pension and other postretirement benefits

(2)

Total other comprehensive (loss) income

(2)

Comprehensive income

667

407

570

San Diego Gas and Electric Company [Member] | Noncontrolling interests (after-tax) [Member]

Net income

(5)

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Financial instruments

Pension and other postretirement benefits

Total other comprehensive (loss) income

Comprehensive income

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

Net income

676

421

565

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Financial instruments

Pension and other postretirement benefits

(2)

Total other comprehensive (loss) income

Comprehensive income

682

432

575

Southern California Gas Company [Member]

Net income

401

397

^[1]

350

^[1]

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Total other comprehensive (loss) income

(3)

Southern California Gas Company [Member] | Pretax amount [Member]

Net income

493

557

493

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Financial instruments

Pension and other postretirement benefits

(6)

Total other comprehensive (loss) income

(5)

Comprehensive income

494

558

488

Southern California Gas Company [Member] | Income tax (expense) benefit [Member]

Net income

(92)

(160)

(143)

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Financial instruments

Pension and other postretirement benefits

Total other comprehensive (loss) income

Comprehensive income

(92)

(160)

(141)

Southern California Gas Company [Member] | Net-of-tax amount [Member]

Net income

401

397

350

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Financial instruments

Pension and other postretirement benefits

(4)

Total other comprehensive (loss) income

(3)

Comprehensive income

$ 402

$ 398

$ 347

[1]	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Offering costs from sale of noncontrolling interests	$ 1	$ 3	$ 40
Preferred Stock [Member]
Payment of stock issuance costs	42
Common Stock [Member]
Payment of stock issuance costs	$ 41

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation

We provide our calculations of ETRs in the following table.



INCOME TAX EXPENSE AND EFFECTIVE INCOME TAX RATES
(Dollars in millions)
	Years ended December 31,
	2018			2017			2016
Sempra Energy Consolidated:
Income tax expense	$	96		$	1,276		$	389

Income before income taxes and equity earnings of unconsolidated entities	$	1,046		$	1,551		$	1,824
Equity (losses) earnings, before income tax⁽¹⁾	(236		)	34			6
Pretax income	$	810		$	1,585		$	1,830

Effective income tax rate	12		%	81		%	21		%
SDG&E:
Income tax expense	$	173		$	155		$	280
Income before income taxes	$	849		$	576		$	845
Effective income tax rate	20		%	27		%	33		%
SoCalGas:
Income tax expense	$	92		$	160		$	143
Income before income taxes	$	493		$	557		$	493
Effective income tax rate	19		%	29		%	29		%


⁽¹⁾	We discuss how we recognize equity earnings in Note 6.

We present in the table below reconciliations of net U.S. statutory federal income tax rates to our ETRs.



RECONCILIATION OF FEDERAL INCOME TAX RATES TO EFFECTIVE INCOME TAX RATES

	Years ended December 31,
	2018		2017		2016
Sempra Energy Consolidated:
U.S. federal statutory income tax rate	21	%	35	%	35	%
Effects of the TCJA	11		55		—
Non-U.S. earnings taxed at rates different from the U.S. statutory income tax rate⁽¹⁾	9		(3	)	(3	)
Utility depreciation	7		6		4
Foreign exchange and inflation effects⁽²⁾	4		3		(2	)
Compensation-related items	3		—		(2	)
Unrecognized income tax benefits	2		—		—
Noncontrolling interests in tax equity arrangements	2		—		—
Resolution of prior years’ income tax items	—		(2	)	—
Impairment losses at Sempra LNG & Midstream	(19	)	—		—
Utility repairs expenditures	(8	)	(6	)	(4	)
Tax credits	(6	)	(4	)	(3	)
State income taxes, net of federal income tax benefit	(5	)	1		1
Self-developed software expenditures	(4	)	(4	)	(3	)
Allowance for equity funds used during construction	(3	)	(3	)	(2	)
Amortization of excess deferred income taxes	(2	)	—		—
Merger-related transaction costs	(1	)	—		—
Other, net	1		3		—
Effective income tax rate	12	%	81	%	21	%
SDG&E:
U.S. federal statutory income tax rate	21	%	35	%	35	%
State income taxes, net of federal income tax benefit	5		3		5
Depreciation	3		7		5
Effects of the TCJA	—		5		—
Resolution of prior years’ income tax items	—		(4	)	(1	)
Compensation-related items	—		—		(1	)
Repairs expenditures	(3	)	(8	)	(4	)
Self-developed software expenditures	(2	)	(6	)	(3	)
Allowance for equity funds used during construction	(2	)	(4	)	(2	)
Amortization of excess deferred income taxes	(1	)	—		—
Other, net	(1	)	(1	)	(1	)
Effective income tax rate	20	%	27	%	33	%
SoCalGas:
U.S. federal statutory income tax rate	21	%	35	%	35	%
Depreciation	7		9		9
Unrecognized income tax benefits	4		—		—
State income taxes, net of federal income tax benefit	2		3		2
Compensation-related items	1		—		(1	)
Repairs expenditures	(7	)	(8	)	(9	)
Self-developed software expenditures	(3	)	(5	)	(6	)
Allowance for equity funds used during construction	(2	)	(3	)	(2	)
Amortization of excess deferred income taxes	(2	)	—		—
Resolution of prior years’ income tax items	(1	)	(2	)	2
Other, net	(1	)	—		(1	)
Effective income tax rate	19	%	29	%	29	%


⁽¹⁾	Related to operations in Mexico, Chile and Peru.

⁽²⁾

Primarily due to fluctuation of the Mexican peso against the U.S. dollar. We record income tax expense (benefit) from the transactional effects of foreign currency and inflation because of appreciation (depreciation) of the Mexican peso. We also recognize gains (losses) in Other Income, Net, on the Consolidated Statements of Operations from foreign currency derivatives that are partially hedging Sempra Mexico parent’s exposure to movements in the Mexican peso from its controlling interest in IEnova.

Schedule of Impact of Changes in Legislation

The table below summarizes the effects of the TCJA in 2018 and 2017:



EFFECTS OF THE TAX CUTS AND JOBS ACT OF 2017
(Dollars in millions)
	Sempra Energy Consolidated			SDG&E			SoCalGas
2018:
Consolidated Balance Sheets:
Increase (decrease) in net deferred income tax liabilities
due to remeasurement	$	16		$	(38	)	$	5
Increase (decrease) in net regulatory liabilities from
remeasurement of deferred income tax assets and liabilities	$	33		$	38		$	(5	)

Consolidated Statements of Operations:
Income tax expense related to remeasurement of deferred
income tax assets and liabilities	$	49		$	—		$	—
Income tax benefit related to deemed repatriation	(8		)	—			—
U.S. state and non-U.S. withholding tax expense related to
expected future repatriation of foreign earnings	44			—			—
Total increase in income tax expense	$	85		$	—		$	—
2017:
Consolidated Balance Sheets:
Decrease in net deferred income tax liabilities due
to remeasurement	$	(2,220	)	$	(1,400	)	$	(972	)
Increase in net regulatory liabilities from remeasurement of
deferred income tax assets and liabilities	$	2,402		$	1,428		$	974

Consolidated Statements of Operations:
Income tax expense related to remeasurement of deferred
income tax assets and liabilities	$	182		$	28		$	2
Income tax expense related to deemed repatriation	328			—			—
U.S. state and non-U.S. withholding tax expense related to
expected future repatriation of foreign earnings	360			—			—
Total increase in income tax expense	$	870		$	28		$	2

Schedule Of Geographic Components Of Income Before Income Taxes And Equity Earnings Of Certain Unconsolidated Subsidiaries

The table below presents the geographic components of pretax income.



PRETAX INCOME – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Years ended December 31,
	2018			2017		2016
By geographic components:
U.S.	$	(102	)	$	878	$	773
Non-U.S.	912			707		1,057
Total⁽¹⁾	$	810		$	1,585	$	1,830

⁽¹⁾

See “Income Tax Expense and Effective Income Tax Rates” table above for calculation of pretax income.

Schedule Of Components Of Income Tax Expense

The components of income tax expense are as follows.



INCOME TAX EXPENSE (BENEFIT)
(Dollars in millions)
	Years ended December 31,
	2018			2017			2016
Sempra Energy Consolidated:
Current:
U.S. federal	$	(2	)	$	—		$	—
U.S. state	66			—			1
Non-U.S.	214			116			171
Total	278			116			172
Deferred:
U.S. federal	(120		)	536			78
U.S. state	(159		)	297			9
Non-U.S.	101			327			135
Total	(178		)	1,160			222
Deferred investment tax credits	(4		)	—			(5		)
Total income tax expense	$	96		$	1,276		$	389
SDG&E:
Current:
U.S. federal	$	104		$	100		$	—
U.S. state	30			65			22
Total	134			165			22
Deferred:
U.S. federal	17			29			223
U.S. state	24			(41		)	38
Total	41			(12		)	261
Deferred investment tax credits	(2		)	2			(3		)
Total income tax expense	$	173		$	155		$	280
SoCalGas:
Current:
U.S. federal	$	4		$	—		$	—
U.S. state	10			23			40
Total	14			23			40
Deferred:
U.S. federal	78			144			123
U.S. state	2			(5		)	(18		)
Total	80			139			105
Deferred investment tax credits	(2		)	(2		)	(2		)
Total income tax expense	$	92		$	160		$	143

Schedule Of Components Of Deferred Tax Assets And Liabilities

The tables below present the components of deferred income taxes:



DEFERRED INCOME TAXES – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	December 31,
	2018		2017
Deferred income tax liabilities:
Differences in financial and tax bases of fixed assets, investments and other assets⁽¹⁾	$	3,780	$	4,233
U.S. state and non-U.S. withholding tax on repatriation of foreign earnings	382		360
Regulatory balancing accounts	359		376
Property taxes	41		37
Other deferred income tax liabilities	130		117
Total deferred income tax liabilities	4,692		5,123
Deferred income tax assets:
Tax credits	1,114		1,066
Net operating losses	725		968
Compensation-related items	181		199
Postretirement benefits	255		251
Other deferred income tax assets	92		115
Accrued expenses not yet deductible	69		60
Deferred income tax assets before valuation allowances	2,436		2,659
Less: valuation allowances	164		133
Total deferred income tax assets	2,272		2,526
Net deferred income tax liability⁽²⁾	$	2,420	$	2,597


⁽¹⁾	In addition to the financial over tax basis differences in fixed assets, the amount also includes financial over tax basis differences in various interests in partnerships and certain subsidiaries.


⁽²⁾	At December 31, 2018 and 2017, includes $151 million and $170 million, respectively, recorded as a noncurrent asset and $2,571 million and $2,767 million, respectively, recorded as a noncurrent liability on the Consolidated Balance Sheets.



DEFERRED INCOME TAXES – SDG&E AND SOCALGAS
(Dollars in millions)
	SDG&E				SoCalGas
	December 31,				December 31,
	2018		2017		2018		2017
Deferred income tax liabilities:
Differences in financial and tax bases of
utility plant and other assets	$	1,578	$	1,472	$	1,077	$	987
Regulatory balancing accounts	84		113		283		271
Property taxes	29		26		13		12
Other	10		10		2		1
Total deferred income tax liabilities	1,701		1,621		1,375		1,271
Deferred income tax assets:
Net operating losses	—		—		—		58
Tax credits	6		7		3		15
Postretirement benefits	58		43		140		152
Compensation-related items	5		5		25		25
State income taxes	6		14		3		7
Accrued expenses not yet deductible	4		3		13		12
Other	6		19		14		7
Total deferred income tax assets	85		91		198		276
Net deferred income tax liability	$	1,616	$	1,530	$	1,177	$	995

Summary of Tax Credit Carryforwards

The following table summarizes our unused NOLs and tax credit carryforwards.



NET OPERATING LOSSES AND TAX CREDIT CARRYFORWARDS
(Dollars in millions)
	Unused amount at December 31, 2018		Year expiration begins
Sempra Energy Consolidated:
U.S. federal:
NOLs⁽¹⁾	$	2,688	2031
General business tax credits⁽¹⁾	417		2032
Foreign tax credits⁽²⁾	624		2024
U.S. state⁽²⁾:
NOLs	1,942		2019
General business tax credits	82		2019
Non-U.S.⁽²⁾
NOLs	264		2019


⁽¹⁾	We have recorded deferred income tax benefits on these NOLs and tax credits, in total, because we currently believe they will be realized on a more-likely-than-not-basis.


⁽²⁾	We have not recorded deferred income tax benefits on a portion of these NOLs and tax credits because we currently believe they will not be realized on a more-likely-than-not-basis, as discussed below.

Summary of Operating Loss Carryforwards

The following table summarizes our unused NOLs and tax credit carryforwards.



NET OPERATING LOSSES AND TAX CREDIT CARRYFORWARDS
(Dollars in millions)
	Unused amount at December 31, 2018		Year expiration begins
Sempra Energy Consolidated:
U.S. federal:
NOLs⁽¹⁾	$	2,688	2031
General business tax credits⁽¹⁾	417		2032
Foreign tax credits⁽²⁾	624		2024
U.S. state⁽²⁾:
NOLs	1,942		2019
General business tax credits	82		2019
Non-U.S.⁽²⁾
NOLs	264		2019


⁽¹⁾	We have recorded deferred income tax benefits on these NOLs and tax credits, in total, because we currently believe they will be realized on a more-likely-than-not-basis.

⁽²⁾

We have not recorded deferred income tax benefits on a portion of these NOLs and tax credits because we currently believe they will not be realized on a more-likely-than-not-basis, as discussed below.

Summary of Income Tax Contingencies

Following is a reconciliation of the changes in unrecognized income tax benefits and the potential effect on our ETR for the years ended December 31:



RECONCILIATION OF UNRECOGNIZED INCOME TAX BENEFITS
(Dollars in millions)
	2018			2017			2016
Sempra Energy Consolidated:
Balance at January 1	$	89		$	90		$	87
Increase in prior period tax positions	7			22			2
Decrease in prior period tax positions	(1		)	(15		)	(2		)
Increase in current period tax positions	24			4			6
Settlements with taxing authorities	—			(12		)	(3		)
Balance at December 31	$	119		$	89		$	90
Of December 31 balance, amounts related to tax positions that
if recognized in future years would
decrease the effective tax rate⁽¹⁾	$	(107	)	$	(77	)	$	(87	)
increase the effective tax rate⁽¹⁾	24			20			36
SDG&E:
Balance at January 1	$	10		$	22		$	20
Increase in prior period tax positions	1			9			—
Decrease in prior period tax positions	—			(11		)	—
Increase in current period tax positions	—			—			2
Settlements with taxing authorities	—			(10		)	—
Balance at December 31	$	11		$	10		$	22
Of December 31 balance, amounts related to tax positions that
if recognized in future years would
decrease the effective tax rate⁽¹⁾	$	(9	)	$	(7	)	$	(19	)
increase the effective tax rate⁽¹⁾	1			1			13
SoCalGas:
Balance at January 1	$	35		$	29		$	27
Increase in prior period tax positions	2			3			—
Decrease in prior period tax positions	—			—			(2		)
Increase in current period tax positions	24			4			4
Settlements with taxing authorities	—			(1		)	—
Balance at December 31	$	61		$	35		$	29
Of December 31 balance, amounts related to tax positions that
if recognized in future years would
decrease the effective tax rate⁽¹⁾	$	(51	)	$	(26	)	$	(29	)
increase the effective tax rate⁽¹⁾	23			20			24


⁽¹⁾	Includes temporary book and tax differences that are treated as flow-through for ratemaking purposes, as discussed above.

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible

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



POSSIBLE DECREASES IN UNRECOGNIZED INCOME TAX BENEFITS WITHIN 12 MONTHS
(Dollars in millions)
	At December 31,
	2018			2017			2016
Sempra Energy Consolidated:
Expiration of statutes of limitations on tax assessments	$	(1	)	$	—		$	(2	)
Potential resolution of audit issues with various
U.S. federal, state and local and non-U.S. taxing authorities	(40		)	(8		)	(36		)
	$	(41	)	$	(8	)	$	(38	)
SDG&E:
Expiration of statutes of limitations on tax assessments	$	—		$	—		$	(1	)
Potential resolution of audit issues with various
U.S. federal, state and local taxing authorities	(6		)	(6		)	(10		)
	$	(6	)	$	(6	)	$	(11	)
SoCalGas:
Potential resolution of audit issues with various
U.S. federal, state and local taxing authorities	$	(2	)	$	(2	)	$	(25	)

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2018

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 reasonably estimate the costs and effects of resolving these matters. Accordingly, actual costs incurred may differ materially from amounts accrued, may exceed applicable insurance coverage and could materially adversely affect our business, cash flows, results of operations, financial condition and prospects. Unless otherwise indicated, we are unable to estimate reasonably possible losses in excess of any amounts accrued.

At December 31, 2018, loss contingency accruals for legal matters, including associated legal fees, that are probable and estimable were $200 million for Sempra Energy Consolidated, including $2 million for SDG&E and $147 million for SoCalGas. Amounts for Sempra Energy and SoCalGas include $136 million for matters related to the Aliso Canyon natural gas storage facility gas leak, which we discuss below. We discuss our policy regarding accrual of legal fees in Note 1.

SDG&E

2007 Wildfire Litigation and Net Cost Recovery Status

SDG&E has resolved all litigation associated with three wildfires that occurred in October 2007.

As a result of a CPUC decision denying SDG&E’s request to recover wildfire costs, SDG&E wrote off the wildfire regulatory asset, resulting in a charge of $351 million ($208 million after tax) in the third quarter of 2017. SDG&E continues to vigorously pursue recovery of these costs, which were incurred through settling claims brought under the doctrine of inverse condemnation. SDG&E applied to the CPUC for rehearing of its decision on January 2, 2018. On July 12, 2018, the CPUC adopted a decision denying the rehearing requests filed by SDG&E and other parties. On August 3, 2018, SDG&E filed an appeal with the California Court of Appeal seeking to reverse the CPUC’s decision. The filing also asked the court to direct the CPUC to award SDG&E recovery for payments made to settle inverse condemnation claims and limit any reasonableness review to the amounts of those payments. On November 13, 2018, the California Court of Appeal denied SDG&E’s petition. On November 26, 2018, SDG&E filed an appeal with the California Supreme Court seeking to reverse the decisions of the CPUC and the California Court of Appeal. In January 2019, the California Supreme Court denied SDG&E’s petition. We intend to appeal the decision up to the U.S. Supreme Court seeking to reverse the CPUC’s decision.

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 natural gas storage facility has been operated by SoCalGas since 1972. SS25 is one of more than 100 injection-and-withdrawal wells at the storage facility. SoCalGas worked closely with several of the world’s leading experts to stop the Leak, and on February 18, 2016, DOGGR confirmed that the well was permanently sealed. SoCalGas 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.

As discussed in “Cost Estimates and Accounting Impact” below, SoCalGas incurred significant costs for temporary relocation, to control the well and to stop the Leak, as well as to purchase natural gas to replace that lost through the Leak. As discussed in “Local Community Mitigation Efforts” below, during the Leak and in the months following the sealing of the well, SoCalGas provided support to nearby residents who wished to temporarily relocate as a result of the Leak. These programs ended in July 2016.

SoCalGas has additionally incurred significant costs to defend against and, in certain cases settle, civil and criminal litigation arising from the Leak; to pay for the ongoing root cause analysis to investigate the technical cause of the Leak; to respond to various government and agency investigations regarding the Leak, and to comply with increased regulation imposed as a result of the Leak. As further described below in “Civil and Criminal Litigation,” “Regulatory Proceedings” and “Governmental Investigations and Orders and Additional Regulation,” these activities are ongoing and SoCalGas anticipates that it will incur additional such costs, which may also be significant.

Local Community Mitigation Efforts. Pursuant to a directive by the DPH and orders by the LA Superior Court, SoCalGas provided temporary relocation support to residents in the nearby community who requested it. Following the permanent sealing of the well, the DPH conducted testing in certain homes in the Porter Ranch community and concluded that indoor conditions did not present a long-term health risk and that it was safe for those residents to return home.

In May 2016, the DPH also issued a directive that SoCalGas additionally 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 experienced symptoms from the Leak (the Directive). SoCalGas disputes the Directive, contending that it is invalid and unenforceable, and has filed a petition for writ of mandate to set aside the Directive.

The costs incurred to remediate and stop the Leak and to mitigate local community impacts have been significant and may increase, and we may be subject to potentially significant damages, restitution, and civil, administrative and criminal fines, penalties and other costs. If any of these costs are not covered by insurance (including any costs in excess of applicable policy limits), if there are significant delays in receiving insurance recoveries, or if the insurance recoveries are subject to income taxes while the associated costs are not tax deductible, such amounts could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations.

Civil and Criminal Litigation. As of February 21, 2019, 393 lawsuits, including approximately 48,000 plaintiffs, are pending against SoCalGas, some of which have also named Sempra Energy. All these cases, other than a matter brought by the Los Angeles County District Attorney, two complaints on behalf of certain firefighters and the federal securities class action discussed below, are coordinated before a single court in the LA Superior Court for pretrial management (the Coordination Proceeding).

Pursuant to the Coordination Proceeding, in March 2017, the individuals and business entities asserting tort and Proposition 65 claims filed a Second Amended Consolidated Master 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, loss of consortium and violations of Proposition 65 against SoCalGas, with certain causes also naming Sempra Energy. The consolidated complaint seeks compensatory and punitive damages for personal injuries, lost wages and/or lost profits, property damage and diminution in property value, injunctive relief, costs of future medical monitoring, civil penalties (including penalties associated with Proposition 65 claims alleging violation of requirements for warning about certain chemical exposures), and attorneys’ fees.

In January 2017, pursuant to the Coordination Proceeding, two consolidated class action complaints were filed against SoCalGas and Sempra Energy, one on behalf of a putative class of persons and businesses who own or lease real property within a five-mile radius of the well (the Property Class Action), and a second on behalf of a putative class of all persons and entities conducting business within five miles of the facility (the Business Class Action). Both complaints assert claims for strict liability for ultra-hazardous activities, negligence and violation of the California Unfair Competition Law. The Property Class Action also asserts claims for negligence per se, trespass, permanent and continuing public and private nuisance, and inverse condemnation. The Business Class Action also asserts a claim for negligent interference with prospective economic advantage. Both complaints seek compensatory, statutory and punitive damages, injunctive relief and attorneys’ fees. In December 2017, the California Court of Appeal, Second Appellate District ruled that the purely economic damages alleged in the Business Class Action are not recoverable under the law. In February 2018, the California Supreme Court granted a petition filed by the plaintiffs to review that ruling.

In September and October of 2017, property developers filed two complaints, one of which was amended in July 2018, against SoCalGas and Sempra Energy alleging causes of action for strict liability, negligence per se, negligence, continuing nuisance, permanent nuisance and violation of the California Unfair Competition Law, as well as claims for negligence against certain directors of SoCalGas. The complaints seek compensatory, statutory and punitive damages, injunctive relief and attorneys’ fees. These claims are joined in the Coordination Proceeding.

In addition to the lawsuits described above, in October 2018 and January 2019, complaints were filed on behalf of 51 plaintiffs who are firefighters stationed near the Aliso Canyon natural gas storage facility and allege they were injured by exposure to

chemicals released during the Leak. The complaints against SoCalGas and Sempra Energy assert causes of actions 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. The complaints seek compensatory and punitive damages for personal injuries, lost wages and/or lost profits, property damage and diminution in property value, and attorney’s fees. SoCalGas expects that these cases will be joined in the Coordination Proceeding.

In addition, a federal securities class action alleging violation of the federal securities laws has been filed against Sempra Energy and certain of its officers and certain of its directors in the SDCA. In March 2018, the District Court dismissed the action with prejudice, and in December 2018 the Court denied the plaintiffs’ request for reconsideration of that order. The plaintiffs have filed a notice of appeal of the dismissal.

Five shareholder derivative actions are also pending in the Coordination Proceeding alleging breach of fiduciary duties against certain officers and certain directors of Sempra Energy and/or SoCalGas, four of which were joined in a Consolidated Shareholder Derivative Complaint in August 2017.

Three actions filed by public entities are pending in the Coordination Proceeding. First, in July 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 LA 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 by SoCalGas in Los Angeles County require safety upgrades, including the installation of a sub-surface safety shut-off valve 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.

Second, in August 2016, the California Attorney General, acting in an 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.

Third, a petition for writ of mandate filed by the County of Los Angeles is pending against DOGGR and its State Oil and Gas Supervisor and the CPUC and its Executive Director, as to which SoCalGas is the real party in interest. The petition alleges that in issuing its July 2017 determination that the requirements for the resumption of injection operations were met (discussed under “Natural Gas Storage Operations and Reliability” below), DOGGR failed to comply with the provisions of SB 380, which requires a comprehensive safety review of the Aliso Canyon natural gas storage facility before injection of natural gas may resume. The County alleges, among other things, that DOGGR failed to comply with the provisions of SB 380 in declaring the safety review complete and authorizing the resumption of injection of natural gas into the facility before the root cause analysis was complete, failing to make its safety-review documents available to the public and failing to address seismic risks to the field as part of its safety review. The County further alleges that CEQA required DOGGR to prepare an environmental impact review before the resumption of injection of natural gas at the facility may be approved. The petition seeks a writ of mandate requiring DOGGR and the State Oil and Gas Supervisor to comply with SB 380 and CEQA, and to produce records in response to the County’s Public Records Act request, as well as declaratory and injunctive relief against any authorization to inject natural gas and attorneys’ fees.

In August 2018, SoCalGas entered into a settlement agreement with the Los Angeles City Attorney’s Office, the County of Los Angeles, the California Office of the Attorney General and CARB (collectively, the Government Plaintiffs) to settle the three public entity actions for payments and funding for environmental projects totaling $120 million, including $21 million in civil penalties (the Government Plaintiffs Settlement). Under the settlement agreement, SoCalGas also agreed to continue its fence-line methane monitoring program, establish a safety committee and hire an independent ombudsman to monitor and report on the safety at the facility. This settlement also fully resolves SoCalGas’ commitment to mitigate the actual natural gas released during the Leak and fulfills the requirements of the Governor’s Order, described below, for SoCalGas to pay for a mitigation program developed by CARB. The Government Plaintiffs Settlement was approved by the LA Superior Court in February 2019.

Separately, in February 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. Pursuant to a settlement agreement with the Los Angeles County District Attorney’s Office, SoCalGas agreed to plead 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 $233,500, and operational commitments estimated to cost approximately $6 million, reimbursements and assessments in exchange for the Los Angeles County District Attorney’s Office moving to dismiss the remaining counts at sentencing and settling the complaint (the District Attorney Settlement). In November 2016, SoCalGas completed the commitments and obligations under the District Attorney Settlement, and on November 29, 2016, the LA Superior Court approved the settlement and entered judgment on the notice charge. Certain individuals who object to the settlement have filed an appeal of the judgment, contending they should be granted restitution.

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

Regulatory Proceedings. In February 2017, the CPUC opened a proceeding pursuant to SB 380 to determine the feasibility of minimizing or eliminating the use of the Aliso Canyon natural gas storage facility, while still maintaining energy and electric reliability for the region. The CPUC indicated it intends to conduct the proceeding in two phases, with Phase 1 undertaking a comprehensive effort to develop the appropriate analyses and scenarios to evaluate the impact of reducing or eliminating the use of the Aliso Canyon natural gas storage facility and Phase 2 using those analyses and scenarios to evaluate the impacts of reducing or eliminating the use of the Aliso Canyon natural gas storage facility.

The order establishing the scope of the proceeding expressly excludes issues with respect to air quality, public health, causation, culpability or cost responsibility regarding the Leak. In January 2019, the CPUC concluded Phase 1 of the proceeding by establishing a framework for the hydraulic, production cost and economic modeling assumptions for the potential reduction in usage or elimination of the Aliso Canyon natural gas storage facility. Phase 2 of the proceeding is expected to begin in the first quarter of 2019 and will evaluate the impacts of reducing or eliminating the Aliso Canyon natural gas storage facility using the established framework and models.

Section 455.5 of the California Public Utilities Code, among other things, directs regulated utilities to notify the CPUC if all or any portion of a major facility has been out of service for nine consecutive months. Following an OII proceeding, the CPUC ruled in September 2018 that the Aliso Canyon natural gas storage facility had not been out of service for nine consecutive months within the meaning of section 455.5.

Governmental Investigations and Orders and Additional Regulation. Various governmental agencies, including DOE, DOGGR, DPH, SCAQMD, CARB, Los Angeles Regional Water Quality Control Board, California Division of Occupational Safety and Health, CPUC, PHMSA, EPA, Los Angeles County District Attorney’s Office and California Attorney General’s Office, have investigated or are investigating this incident. In January 2016, DOGGR and the CPUC selected Blade Energy Partners to conduct, under their supervision, an independent analysis of the technical root cause of the Leak, to be funded by SoCalGas. The root cause analysis is ongoing, and its timing is under the control of Blade Energy Partners, DOGGR and the CPUC.

In January 2016, the Governor of the State of California proclaimed a state of emergency in Los Angeles County due to the Leak. The proclamation ordered various actions with respect to the Leak, including: (1) applicable agencies must 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; (2) the CPUC must ensure that SoCalGas covers costs related to the natural gas leak and its response while protecting ratepayers; (3) CARB must develop a program, to be funded by SoCalGas, to fully mitigate the Leak’s emissions of methane; and (4) DOGGR, CPUC, CARB and the CEC must submit to the Governor’s Office a report that assesses the long-term viability of natural gas storage facilities in California.

In March 2016, the CARB issued its “Aliso Canyon Methane Leak Climate Impacts Mitigation Program” recommending a program to fully mitigate the emissions from the Leak. In October 2016, CARB issued a report concluding that SoCalGas should mitigate 109,000 metric tons of methane to fully mitigate the GHG impacts of the Leak. The Government Plaintiffs Settlement described above satisfies the mitigation requirement of the Governor’s emergency proclamation.

Cost Estimates and Accounting Impact. At December 31, 2018, SoCalGas estimates its costs related to the Leak are $1,055 million (the cost estimate), which includes $1,027 million of costs recovered or probable of recovery from insurance. Approximately 54 percent of the cost estimate is for the temporary relocation program (including cleaning costs and certain labor costs). The remaining portion of the cost estimate includes costs incurred to defend litigation, for the root cause analysis being conducted by an independent third party, for efforts to control the well, to mitigate the actual natural gas released, for the cost of replacing the lost gas, and other costs, as well as the estimated costs to settle certain actions. SoCalGas adjusts the cost estimate as

additional information becomes available. A substantial portion of the cost estimate has been paid, and $160 million is accrued as Reserve for Aliso Canyon Costs as of December 31, 2018 on SoCalGas’ and Sempra Energy’s Consolidated Balance Sheets.

As of December 31, 2018, we recorded the expected recovery of the cost estimate related to the Leak of $461 million as Insurance Receivable for Aliso Canyon Costs on SoCalGas’ and Sempra Energy’s Consolidated Balance Sheets. This amount is net of insurance retentions and $566 million of insurance proceeds we received through December 31, 2018 related to portions of the cost estimate described above, including temporary relocation and associated processing costs, control-of-well expenses, legal costs and lost gas. If we were to conclude that this receivable or a portion of it is no longer probable of recovery from insurers, some or all of this receivable would be charged against earnings, which could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations.

As described in “Civil and Criminal Litigation” above, the actions seek compensatory, statutory and punitive damages, restitution, and civil, administrative and criminal fines, penalties and other costs, which, except for the amounts paid or estimated to settle certain actions, are not included in the cost estimate as it is not possible at this time to predict the outcome of these actions or reasonably estimate the amount of damages, restitution or civil, administrative or criminal fines, penalties or other costs that may be imposed. The recorded amounts above also do not include the costs to clean additional homes pursuant to the 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. Furthermore, the cost estimate does not include certain other costs incurred by Sempra Energy associated with defending against shareholder derivative lawsuits.

Insurance. Excluding directors’ and officers’ liability insurance, we have at least four kinds of insurance policies that together we estimate 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. Subject to various policy limits, exclusions and conditions, based on 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: costs incurred for temporary relocation and associated processing costs (including cleaning costs and certain labor costs), costs to address the Leak and stop or reduce emissions, the root cause analysis being conducted to investigate the cause of the Leak, the value of lost gas, costs incurred to mitigate the actual natural gas released, costs associated with litigation and claims by nearby residents and businesses, any costs to clean additional homes pursuant to the Directive, 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 portions of the costs described above, including temporary relocation and associated processing costs, control-of-well expenses, legal costs and lost gas. 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 additional insurance recovery for these costs, and to the extent we are not successful in obtaining coverage or these costs exceed the amount of our coverage, such costs could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations.

At December 31, 2018, SoCalGas’ estimate of costs related to the Leak of $1,055 million include $1,027 million of costs recovered or probable of recovery from insurance. This estimate may rise significantly as more information becomes available. Costs not included in the $1,055 million cost estimate could be material. If any costs are not covered by insurance (including any costs in excess of applicable policy limits), if there are significant delays in receiving insurance recoveries, or if the insurance recoveries are subject to income taxes while the associated costs are not tax deductible, such amounts could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations.

Natural Gas Storage Operations and Reliability. 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. The Aliso Canyon natural gas storage facility, with a capacity of 86 Bcf (representing 63 percent of SoCalGas’ natural gas storage capacity), is the largest SoCalGas storage facility and an important element of SoCalGas’ delivery system. As a result of the Leak, SoCalGas suspended injection of natural gas into the Aliso Canyon natural gas storage facility beginning in October 2015, and following a comprehensive safety review and authorization by DOGGR and the CPUC’s Executive Director, resumed limited injection operations in July 2017.

During the suspension period, SoCalGas advised the California ISO, CEC, CPUC and PHMSA of its concerns that the inability to inject natural gas into the Aliso Canyon natural gas storage facility posed a risk to energy reliability in Southern California. The CPUC has issued a series of directives to SoCalGas establishing the range of working gas to be maintained in the Aliso Canyon natural gas storage facility to help ensure safety and reliability for the region and just and reasonable rates in California, the most recent of which, issued July 2, 2018, directed SoCalGas to maintain up to 34 Bcf of working gas. Limited withdrawals of natural gas from the facility were made in 2018 to augment natural gas supplies during critical demand periods.

If the Aliso Canyon natural gas storage facility were to be permanently closed, or if future cash flows were otherwise insufficient to recover its carrying value, it could result in an impairment of the facility and significantly higher than expected operating costs and/or additional capital expenditures, and natural gas reliability and electric generation could be jeopardized. At December 31, 2018, the Aliso Canyon natural gas storage facility had a net book value of $724 million. 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 could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations.

Sempra Mexico

Property Disputes and Permit Challenges

Energía Costa Azul. Sempra Mexico has been engaged in a long-running land dispute relating to property adjacent to its ECA LNG terminal near Ensenada, Mexico. A claimant to the adjacent property filed complaints in the federal Agrarian Court challenging the refusal of SEDATU in 2006 to issue a title to him for the disputed property. In November 2013, the federal 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 in Mexico. Sempra Mexico expects additional proceedings regarding the claims.

Several administrative challenges are pending in Mexico before the Mexican environmental protection agency and the Federal Tax and Administrative Courts seeking revocation of the environmental impact authorization issued to ECA in 2003. These cases generally allege that the conditions and mitigation measures in the environmental impact authorization are inadequate and challenge findings that the activities of the terminal are consistent with regional development guidelines.

Additionally, in August 2018, a claimant filed a challenge in the federal district court in Ensenada, Baja California in relation to the environmental and social impact permits issued to ECA in September 2017 and December 2017, respectively, to allow natural gas liquefaction activities at the ECA LNG terminal. The court issued a provisional injunction on September 28, 2018 that has uncertain application and requires clarification by the court, which is being pursued through additional proceedings. In December 2018, the relevant Mexican regulators approved the requested modifications to the permits to allow natural gas liquefaction activities at the ECA LNG terminal.

Cases involving two parcels of real property have been filed against ECA. In one case, filed in the federal Agrarian Court in 2006, the plaintiffs seek to annul the recorded property title for a parcel on which the ECA LNG terminal is situated and to obtain possession of a different parcel that allegedly sits in the same place. Another civil complaint filed in the state court was served in April 2012 seeking to invalidate the contract by which ECA purchased another of the terminal parcels, on the grounds the purchase price was unfair; the plaintiff filed a second complaint in 2013 in the federal Agrarian Court seeking an order that SEDATU issue title to her. In January 2016, the federal Agrarian Court ruled against the plaintiff, and the plaintiff appealed the ruling. In May 2018, the state court dismissed the civil complaint, and the plaintiff has appealed. Sempra Mexico expects further proceedings on these two matters.

Guaymas-El Oro Segment of the Sonora Pipeline. IEnova’s Sonora natural gas pipeline consists of two segments, the Sasabe-Puerto Libertad-Guaymas segment, and the Guaymas-El Oro segment. Each segment has its own service agreement with the CFE. In 2015, the Yaqui tribe, with the exception of some members living in the Bácum community, granted its consent and a right-of-way easement agreement for the construction of the Guaymas-El Oro segment of the Sonora natural gas pipeline that crosses its territory. Representatives of the Bácum community filed a legal challenge in Mexican Federal Court demanding the right to withhold consent for the project, the stoppage of work in the Yaqui territory and damages. In 2016, the judge granted a suspension order that prohibited the construction of such segment through the Bácum community territory. Because the pipeline does not pass through the Bácum community, IEnova did not believe the 2016 suspension order prohibited construction in the remainder of the Yaqui territory. Because of the dispute, however, IEnova was delayed in the construction of approximately 14 kilometers of pipeline that pass through territory of the Yaqui tribe. IEnova declared a force majeure under its contract with the CFE as a result of such construction delays. The CFE agreed to extend the deadline for commercial operations of the Guaymas-El Oro segment until the second quarter of 2017 and to pay fixed charge payments pursuant to the service agreement during such extension. Construction of the Guaymas-El Oro segment was completed, and commercial operations began in May 2017.

Following the start of commercial operations of the Guaymas-El Oro segment, an appellate court ruled that the scope of the 2016 suspension order encompassed the wider Yaqui territory. The legal challenge remains pending. IEnova has subsequently reported damage and declared a force majeure event for the Guaymas-El Oro segment of the Sonora pipeline in the Yaqui territory that has interrupted its operations since August 23, 2017. IEnova will continue to exercise its rights under the contract, which includes seeking (i) force majeure payments; and (ii) just compensation following the expiration of the two-year period such force majeure

payments are required to be made. The Sasabe-Puerto Libertad-Guaymas segment of the Sonora pipeline remains in full operation.

Other Litigation

Sempra Energy holds an NCI in RBS Sempra Commodities, a limited liability partnership in the process of being liquidated. NatWest Markets plc, formerly RBS, our partner in the JV, paid an assessment of £86 million (approximately $138 million in U.S. dollars) in October 2014 to HMRC for denied VAT refund claims filed in connection with the purchase of carbon credit allowances by RBS SEE, a subsidiary of RBS Sempra Commodities. RBS SEE has since been sold to JP Morgan and later to Mercuria Energy Group, Ltd. HMRC asserted that RBS was not entitled to reduce its VAT liability by VAT paid on certain carbon credit purchases during 2009 because RBS knew or should have known that certain vendors in the trading chain did not remit their own VAT to HMRC. After paying the assessment, RBS filed a Notice of Appeal of the assessment with the First-Tier Tribunal. Trial on the matter has not been scheduled.

During 2015, liquidators filed a claim in the High Court of Justice against RBS and Mercuria Energy Europe Trading Limited (the Defendants) on behalf of ten companies (the Liquidating Companies) that engaged in carbon credit trading via chains that included a company that traded directly with RBS SEE. The claim alleges that the Defendants’ participation in the purchase and sale of carbon credits resulted in the Liquidating Companies’ carbon credit trading transactions creating a VAT liability they were unable to pay, and that the Defendants are liable to provide for equitable compensation due to dishonest assistance and for compensation under the U.K. Insolvency Act of 1986. Trial on the matter was held in June and July of 2018, at the close of which the Liquidating Companies asserted that the Defendants were liable to the Liquidating Companies in the amount of £71.5 million (approximately $91 million in U.S. dollars at December 31, 2018) for dishonest assistance and, to the extent that claim is unsuccessful, to the liquidators in the same amount under the U.K. Insolvency Act of 1986. If the High Court of Justice finds the Defendants liable, it will determine the amount. JP Morgan has notified us that Mercuria Energy Group, Ltd. has sought indemnity for the claim, and JP Morgan has in turn sought indemnity from Sempra Energy and RBS.

While the ultimate outcome remains uncertain, we continue to evaluate the likelihood of recovery of our investment. Accordingly, in the third quarter of 2018, we fully impaired our remaining $65 million equity method investment in RBS Sempra Commodities, which is included in Equity Earnings on Sempra Energy’s Consolidated Statement of Operations.

Certain EFH subsidiaries that we acquired as part of the Merger are defendants in personal injury lawsuits brought in state courts throughout the U.S. As of February 21, 2019, 119 such lawsuits are pending, and 1,685 such lawsuits have been filed but not served. These cases allege illness or death as a result of exposure to asbestos in power plants designed and/or built by companies whose assets were purchased by predecessor entities to the EFH subsidiaries, and generally assert claims for product defects, negligence, strict liability and wrongful death. They seek compensatory and punitive damages. Additionally, in connection with the EFH bankruptcy proceeding, approximately 28,000 proofs of claim were filed on behalf of persons who allege exposure to asbestos under similar circumstances and assert the right to file such lawsuits in the future. We anticipate additional lawsuits will be filed. None of these claims or lawsuits were discharged in the EFH bankruptcy proceeding.

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

CONTRACTUAL COMMITMENTS

Natural Gas Contracts

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

SoCalGas transports natural gas primarily under long-term firm interstate pipeline capacity agreements that provide for annual reservation charges, which are recovered in rates. SoCalGas has commitments with interstate pipeline companies for firm pipeline capacity under contracts that expire at various dates through 2031.

Sempra LNG & Midstream’s and Sempra Mexico’s businesses have various capacity agreements for natural gas storage and transportation. In addition, Sempra Mexico has a natural gas purchase agreement to fuel a natural gas-fired power plant.

In May 2016, Sempra LNG & Midstream permanently released certain 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 Consolidated Statement of Operations. The charge represented an acceleration of costs that would otherwise have been recognized over the duration of the contracts. Sempra LNG & Midstream has recorded a liability for these costs, less expected proceeds generated from the permanent capacity releases. Sempra LNG & Midstream’s related obligation to make future capacity payments through November 2019 is included in the table below.

In May 2017, Sempra LNG & Midstream received settlement proceeds of $57 million from a breach of contract claim against a counterparty in bankruptcy court. Of the total proceeds, $47 million related to the $206 million charge we recorded in 2016 resulting from the permanent release of certain pipeline capacity. Sempra LNG & Midstream recorded the settlement proceeds as a reduction to Other Cost of Sales on Sempra Energy’s Consolidated Statement of Operations in 2017.

At December 31, 2018, the future estimated payments under existing natural gas contracts and natural gas storage and transportation contracts are as follows:



FUTURE ESTIMATED PAYMENTS – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Storage and transportation		Natural gas⁽¹⁾		Total⁽¹⁾
2019	$	230	$	33	$	263
2020	158		15		173
2021	144		12		156
2022	73		12		85
2023	50		13		63
Thereafter	262		18		280
Total estimated payments	$	917	$	103	$	1,020


⁽¹⁾	Excludes amounts related to the LNG purchase agreement discussed below.



FUTURE ESTIMATED PAYMENTS – SOCALGAS
(Dollars in millions)
	Transportation		Natural gas		Total
2019	$	114	$	12	$	126
2020	118		4		122
2021	104		—		104
2022	37		—		37
2023	23		1		24
Thereafter	49		—		49
Total estimated payments	$	445	$	17	$	462



PAYMENTS UNDER NATURAL GAS CONTRACTS
(Dollars in millions)
	Years ended December 31,
	2018		2017		2016
Sempra Energy Consolidated	$	1,345	$	1,429	$	1,169
SoCalGas	1,169		1,213		966

LNG Purchase Agreement

Sempra LNG & Midstream has a sale and purchase agreement for the supply of LNG to the ECA terminal. The commitment amount is calculated using a predetermined formula based on estimated forward prices of the index applicable from 2019 to 2029. Although this agreement specifies a number of cargoes to be delivered, under its terms, the customer may divert certain cargoes, which would reduce amounts paid under the agreement by Sempra LNG & Midstream.

At December 31, 2018, the following LNG commitment amounts are based on the assumption that all cargoes, less those already confirmed to be diverted, under the agreement are delivered:



LNG COMMITMENT AMOUNTS
(Dollars in millions)
2019	$	289
2020	372
2021	368
2022	373
2023	385
Thereafter	2,475
Total	$	4,262

Actual LNG purchases in 2018, 2017 and 2016 have been significantly lower than the maximum amount provided under the agreement due to the customer electing to divert most cargoes as allowed by the agreement.

Purchased-Power Contracts

For 2019, SDG&E expects to meet its customer power requirements from the following resource types:


▪	Long-term contracts: 37 percent (of which 36 percent is provided by renewable energy contracts expiring on various dates through 2041)


▪	Other SDG&E-owned generation and tolling contracts (including OMEC): 55 percent


▪	Spot market purchases: 8 percent

Chilquinta Energía and Luz del Sur also have purchased-power contracts, expiring on various dates extending through 2031, which cover most of the consumption needs of the companies’ customers. These commitments are included under Sempra Energy Consolidated in the table below.

At December 31, 2018, the future estimated payments under long-term purchased-power contracts are as follows:



FUTURE ESTIMATED PAYMENTS – PURCHASED-POWER CONTRACTS
(Dollars in millions)
	Sempra Energy Consolidated		SDG&E
2019	$	654	$	527
2020	629		510
2021	631		510
2022	592		496
2023	549		451
Thereafter	5,185		5,026
Total estimated payments⁽¹⁾⁽²⁾	$	8,240	$	7,520


⁽¹⁾	Excludes purchase agreements accounted for as capital leases and amounts related to Otay Mesa VIE, as it is consolidated by Sempra Energy and SDG&E.


⁽²⁾	Includes $5.2 billion of expected payments under purchase agreements accounted for as operating leases at SDG&E, comprised of renewable energy PPAs for which there are no future minimum operating lease payments.

Payments on these contracts represent capacity charges and minimum energy and transmission purchases that exceed the minimum commitment. SDG&E and Luz del Sur are required to pay additional amounts for actual purchases of energy that exceed the minimum energy commitments. Total payments under purchased-power contracts were as follows:



PAYMENTS UNDER PURCHASED-POWER CONTRACTS
(Dollars in millions)
	Years ended December 31,
	2018		2017		2016
Sempra Energy Consolidated	$	1,582	$	1,694	$	1,667
SDG&E	712		781		752

Operating Leases

Sempra Energy Consolidated, SDG&E and SoCalGas have operating leases on real and personal property expiring at various dates from 2019 through 2042. Certain leases on office facilities contain escalation clauses requiring annual increases in rent ranging from two percent to five percent at Sempra Energy Consolidated, SDG&E and SoCalGas. The rentals payable under these leases may increase by a fixed amount each year or by a percentage of a base year, and most leases contain extension options that we could exercise.

The California Utilities have operating lease agreements for future acquisitions of fleet vehicles with an aggregate maximum lease limit of $201 million, $130 million of which has been utilized as of December 31, 2018.

Rent expense for operating leases was as follows:



RENT EXPENSE – OPERATING LEASES
(Dollars in millions)
	Years ended December 31,
	2018		2017		2016
Sempra Energy Consolidated	$	123	$	109	$	77
SDG&E	27		28		28
SoCalGas	41		43		38

At December 31, 2018, the rental commitments payable in future years under all noncancelable operating leases, including estimated payments, are as follows:



FUTURE RENTAL PAYMENTS – OPERATING LEASES
(Dollars in millions)
	2019		2020		2021		2022		2023		Thereafter		Total
Sempra Energy Consolidated:
Future minimum lease payments	$	79	$	56	$	54	$	51	$	44	$	259	$	543
Future estimated rental payments	12		12		13		13		13		44		107
Total future rental commitments	$	91	$	68	$	67	$	64	$	57	$	303	$	650
SDG&E:
Future minimum lease payments	$	23	$	22	$	22	$	21	$	17	$	48	$	153
Future estimated rental payments	2		2		2		2		2		7		17
Total future rental commitments	$	25	$	24	$	24	$	23	$	19	$	55	$	170
SoCalGas:
Future minimum lease payments	$	26	$	22	$	21	$	20	$	16	$	28	$	133
Future estimated rental payments	10		10		11		11		11		37		90
Total future rental commitments	$	36	$	32	$	32	$	31	$	27	$	65	$	223

Capital Leases

Power Purchase Agreements

SDG&E has six PPAs with peaker plant facilities, one of which went into commercial operation in December 2018. All are accounted for as capital leases, four with a 25-year term, one with a 20-year term and one with a 9-year term. At December 31, 2018, the aggregate carrying value of these capital lease obligations was $1,270 million. The entities that own the peaker plant facilities are VIEs of which SDG&E is not the primary beneficiary. SDG&E does not have any additional implicit or explicit financial responsibility related to these VIEs.

At December 31, 2018, the future minimum lease payments and present value of the net minimum lease payments under these capital leases for both Sempra Energy Consolidated and SDG&E are as follows:



FUTURE MINIMUM PAYMENTS – POWER PURCHASE AGREEMENTS
(Dollars in millions)
2019	$	210
2020	210
2021	211
2022	211
2023	211
Thereafter	3,196
Total minimum lease payments⁽¹⁾	4,249
Less: estimated executory costs	(480		)
Less: interest⁽²⁾	(2,483		)
Present value of net minimum lease payments⁽³⁾	$	1,286

⁽¹⁾


⁽²⁾	Amount necessary to reduce net minimum lease payments to present value at the inception of the leases.


⁽³⁾	Includes $15 million in Current Portion of Long-Term Debt and $1,255 million in Long-Term Debt on Sempra Energy’s and SDG&E’s Consolidated Balance Sheets at December 31, 2018. The remaining present value of net minimum lease payments of $16 million will be recorded as finance leases when construction of the battery storage facilities is completed and delivery of contracted power commences.

The annual amortization charge for the PPAs was $11 million, $8 million and $4 million in 2018, 2017 and 2016, respectively.

Headquarters Build-to-Suit Lease

Sempra Energy has a 25-year, build-to-suit lease for its San Diego, California, headquarters completed in 2015. As a result of our involvement during and after the construction period, we have recorded the related assets and financing liability for construction costs incurred under this build-to-suit leasing arrangement. See discussion in Note 2 regarding the expected impact on this build-to-suit lease from the adoption of the new lease standard in 2019.

The building is being depreciated on a straight-line basis over its estimated useful life and the associated lease payments are allocated between interest expense and amortization of the financing obligation over the lease period. Further, a portion of the lease payments pertain to the lease of the underlying land and are recorded as rental expense. The balance of the financing obligation, representing the net present value of the future minimum lease payments on the building, is $138 million at December 31, 2018.

At December 31, 2018, the future minimum lease payments on the lease are as follows:



FUTURE MINIMUM PAYMENTS – BUILD-TO-SUIT LEASE
(Dollars in millions)
2019	$	10
2020	11
2021	11
2022	11
2023	11
Thereafter	217
Total minimum lease payments	$	271

Other Capital Leases

At December 31, 2018, the future minimum lease payments under capital leases for fleet vehicles and other assets for Sempra Energy Consolidated are $6 million in 2019, $2 million in 2020, $1 million in 2021, negligible amounts in 2022 and 2023 and $9 million thereafter. The net present value of the minimum lease payments is $11 million at December 31, 2018.

At December 31, 2018, SDG&E and SoCalGas have capital lease obligations for fleet vehicles of $2 million and $3 million, respectively, all of which are payable in 2019.

The annual depreciation charge for fleet vehicles and other assets in 2018, 2017 and 2016 was $8 million, $3 million and $2 million, respectively, at Sempra Energy Consolidated, including $2 million, $1 million and $1 million, respectively, at SDG&E and $6 million, $2 million and $1 million, respectively, at SoCalGas.

Construction and Development Projects

Sempra Energy Consolidated has various capital projects in progress in the U.S., Mexico and South America. Sempra Energy’s total commitments at December 31, 2018 under these projects are approximately $686 million, requiring future payments of $396 million in 2019, $86 million in 2020, $43 million in 2021, $28 million in 2022, $18 million in 2023 and $115 million thereafter. The following is a summary by segment of contractual commitments and contingencies related to such projects.

SDG&E

At December 31, 2018, SDG&E has commitments to make future payments of $144 million for construction projects that include:


▪	$135 million for infrastructure improvements for electric and natural gas transmission and distribution systems; and


▪	$9 million related to spent fuel management at SONGS.

SDG&E expects future payments under these contractual commitments to be $43 million in 2019, $62 million in 2020, $22 million in 2021, $11 million in 2022, $2 million in 2023 and $4 million thereafter.

Sempra South American Utilities

At December 31, 2018, Sempra South American Utilities has commitments to make future payments of $14 million for the construction of substations and related transmission lines in Peru. The future payments under these contractual commitments are all expected to be made in 2019.

Sempra Mexico

At December 31, 2018, Sempra Mexico has commitments to make future payments of $469 million for construction projects that include:


▪	$266 million for natural gas pipelines and ongoing maintenance services;


▪	$94 million for liquid fuels terminals; and


▪	$109 million for renewables projects.

Sempra Mexico expects future payments under these contractual commitments to be $287 million in 2019, $21 million in 2020, $18 million in 2021, $16 million in 2022, $16 million in 2023 and $111 million thereafter.

Sempra Renewables

At December 31, 2018, Sempra Renewables has commitments to make future payments of $13 million for contracts related to its wind assets. Sempra Renewables expects future payments under these contractual commitments to be $6 million in 2019, $3 million in 2020, $3 million in 2021 and $1 million in 2022.

Sempra LNG & Midstream

At December 31, 2018, Sempra LNG & Midstream has commitments to make future payments of $46 million primarily for LNG liquefaction development costs and natural gas transportation projects. The future payments under these contractual commitments are all expected to be made in 2019.

OTHER COMMITMENTS

SDG&E

We discuss nuclear insurance and nuclear fuel disposal related to SONGS in Note 15.

In connection with the completion of the Sunrise Powerlink project in 2012, the CPUC required that SDG&E establish a fire mitigation fund to minimize the risk of fire as well as reduce the potential wildfire impact on residences and structures near the Sunrise Powerlink. The future payments for these contractual commitments, for which a liability has been recorded, are expected to be $3 million per year in 2019 through 2023 and $105 million thereafter, subject to escalation of 2 percent per year, for a remaining 51-year period. At December 31, 2018, the present value of these future payments of $120 million has been recorded as a regulatory asset as the amounts represent a cost that is expected to be recovered from customers in the future.

Sempra LNG & Midstream

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

ENVIRONMENTAL ISSUES

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

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

We discuss environmental matters related to the natural gas leak at SoCalGas’ Aliso Canyon natural gas storage facility above in “Legal Proceedings – SoCalGas – Aliso Canyon Natural Gas Storage Facility Gas Leak.”

Other Environmental Issues

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



CAPITAL EXPENDITURES FOR ENVIRONMENTAL ISSUES
(Dollars in millions)
	Years ended December 31,
	2018		2017		2016
Sempra Energy Consolidated⁽¹⁾	$	101	$	92	$	53
SDG&E	38		46		17
SoCalGas	62		45		35


⁽¹⁾	In cases of non-wholly owned affiliates, includes only our share.

We have not identified any significant environmental issues outside the U.S.

The environmental issues currently facing us, except for those related to the Aliso Canyon natural gas storage facility leak as we discuss above or resolved during the last three years, include (1) investigation and remediation of the California Utilities’ manufactured-gas sites, (2) cleanup of third-party waste-disposal sites used by the California Utilities at sites for which we have been identified as a PRP and (3) mitigation of damage to the marine environment caused by the cooling-water discharge from SONGS.

The table below shows the status at December 31, 2018 of the California Utilities’ manufactured-gas sites and the third-party waste-disposal sites for which we have been identified as a PRP:



STATUS OF ENVIRONMENTAL SITES

	# Sites complete⁽¹⁾	# Sites in process
SDG&E:
Manufactured-gas sites	3	—
Third-party waste-disposal sites	2	1
SoCalGas:
Manufactured-gas sites	39	3
Third-party waste-disposal sites	5	2


⁽¹⁾	There may be ongoing compliance obligations for completed sites, such as regular inspections, adherence to land use covenants and water quality monitoring.

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

The following table shows our accrued liabilities for environmental matters at December 31, 2018:



ACCRUED LIABILITIES FOR ENVIRONMENTAL MATTERS
(Dollars in millions)
	Manufactured- gas sites		Waste disposal sites (PRP)⁽¹⁾		Other hazardous waste sites		Total⁽²⁾
SDG&E⁽³⁾	$	—	$	2	$	3	$	5
SoCalGas⁽⁴⁾	30		1		—		31
Other	—		1		—		1
Total Sempra Energy	$	30	$	4	$	3	$	37


⁽¹⁾	Sites for which we have been identified as a PRP.


⁽²⁾	Includes $10 million, $1 million and $9 million classified as current liabilities, and $27 million, $4 million and $22 million classified as noncurrent liabilities on Sempra Energy’s, SDG&E’s and SoCalGas’ Consolidated Balance Sheets, respectively.


⁽³⁾	Does not include SDG&E’s liability for SONGS marine environment mitigation.


⁽⁴⁾	Does not include SoCalGas’ liability for environmental matters for the Leak at the Aliso Canyon natural gas storage facility. We discuss matters related to the Leak above in “Legal Proceedings – SoCalGas – Aliso Canyon Natural Gas Storage Facility Gas Leak.”

We expect to pay the majority of these accruals over the next three years.

In connection with the issuance of operating permits, SDG&E and the other owners of SONGS previously reached an agreement with the CCC to mitigate the damage to the marine environment caused by the cooling-water discharge from SONGS during its operation. SONGS’ early retirement, described in Note 15, does not reduce SDG&E’s mitigation obligation. SDG&E’s share of the estimated mitigation costs is $68 million, of which $45 million has been incurred through December 31, 2018 and $23 million is accrued for remaining costs through 2050, which is recoverable in rates and included in noncurrent Regulatory Assets on Sempra Energy’s and SDG&E’s Consolidated Balance Sheets. The requirements for enhanced fish protection and restoration of coastal wetlands for the SONGS mitigation are in process. Work on the artificial reef that was dedicated in 2008 continues. The CCC has stated that it now requires an expansion of the reef because the existing reef may be too small to consistently meet the performance standards. In December 2016, SDG&E and Edison filed a joint application with the CPUC seeking rate recovery of the costs of the reef expansion. In October 2017, SDG&E, Edison, TURN and Cal PA filed a joint motion requesting approval of a settlement agreement that amends the rate recovery application and allows costs to be recorded to a memorandum account until rate recovery is approved. The CPUC approved the settlement agreement in March 2018. In accordance with the settlement agreement, an updated cost forecast will be submitted to the CPUC for rate recovery approval when the project’s coastal development permit is approved. We expect to submit the updated cost forecast in 2019. Rates, if approved, would be effective January 2020. SDG&E’s share of the reef expansion costs currently forecasted through 2023 is $4 million.

CONCENTRATION OF CREDIT RISK

We maintain credit policies and systems designed 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.

Projects and businesses owned or partially owned by Sempra Energy 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 and investment opportunities.

REVENUES (Tables)

12 Months Ended

Dec. 31, 2018

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

The following table disaggregates our revenues from contracts with customers by major service line, market and timing of recognition and provides a reconciliation to total revenues by segment.



DISAGGREGATED REVENUES
(Dollars in millions)
	Year ended December 31, 2018
	SDG&E			SoCalGas		Sempra South American Utilities		Sempra Mexico		Sempra Renewables		Sempra LNG & Midstream		Consolidating adjustments			Sempra Energy Consolidated
By major service line:
Utilities	$	4,788		$	3,577	$	1,507	$	78	$	—	$	—	$	(69	)	$	9,881
Midstream	—			—		—		630		—		224		(138		)	716
Renewables	—			—		—		108		46		2		(2		)	154
Other	—			—		73		203		—		6		(6		)	276
Revenues from contracts with customers	$	4,788		$	3,577	$	1,580	$	1,019	$	46	$	232	$	(215	)	$	11,027

By market:
Electric	$	4,297		$	—	$	1,580	$	308	$	46	$	8	$	(12	)	$	6,227
Gas	491			3,577		—		711		—		224		(203		)	4,800
Revenues from contracts with customers	$	4,788		$	3,577	$	1,580	$	1,019	$	46	$	232	$	(215	)	$	11,027

By timing of recognition:
Over time	$	4,677		$	3,454	$	1,554	$	1,019	$	46	$	210	$	(204	)	$	10,756
Point in time	111			123		26		—		—		22		(11		)	271
Revenues from contracts with customers	$	4,788		$	3,577	$	1,580	$	1,019	$	46	$	232	$	(215	)	$	11,027

Revenues from contracts with customers	$	4,788		$	3,577	$	1,580	$	1,019	$	46	$	232	$	(215	)	$	11,027
Utilities regulatory revenues	(220		)	385		—		—		—		—		—			165
Other revenues	—			—		5		357		78		240		(185		)	495
Total revenues	$	4,568		$	3,962	$	1,585	$	1,376	$	124	$	472	$	(400	)	$	11,687

Schedule of Timing of Remaining Performance Obligations

For contracts greater than one year, at December 31, 2018, we expect to recognize revenue related to the fixed fee component of the consideration as shown below. Sempra Energy’s remaining performance obligations primarily relate to capacity agreements for natural gas storage and transportation at Sempra Mexico. SoCalGas did not have any remaining performance obligations at December 31, 2018.



REMAINING PERFORMANCE OBLIGATIONS⁽¹⁾
(Dollars in millions)
	Sempra Energy Consolidated		SDG&E
2019	$	540	$	3
2020	534		3
2021	529		3
2022	528		3
2023	516		3
Thereafter	2,813		52
Total revenues to be recognized	$	5,460	$	67

⁽¹⁾

Excludes intercompany transactions.

Schedule of Contract Liabilities

Activities within Sempra Energy’s contract liabilities are presented below. There were no contract liability activities at SDG&E or SoCalGas for the year ended December 31, 2018.



CONTRACT LIABILITIES
(Dollars in millions)
Opening balance, January 1, 2018	$	—
Adoption of ASC 606 adjustment	(68		)
Revenue from performance obligations satisfied during reporting period	31
Payments received in advance	(39		)
Closing balance, December 31, 2018⁽¹⁾	$	(76	)

⁽¹⁾

Includes $6 million in Other Current Liabilities, a negligible amount in Liabilities Held for Sale and $70 million in Deferred Credits and Other on the Sempra Energy Consolidated Balance Sheet.

Schedule of Contract Accounts Receivable

The table below shows receivable balances associated with revenues from contracts with customers on our Consolidated Balance Sheets.



RECEIVABLES FROM REVENUES FROM CONTRACTS WITH CUSTOMERS
(Dollars in millions)
	December 31, 2018		January 1, 2018
Sempra Energy Consolidated:
Accounts receivable – trade, net	$	1,333	$	1,194
Accounts receivable – other, net	11		10
Due from unconsolidated affiliates – current⁽¹⁾	4		8
Assets held for sale	6		—
Total	$	1,354	$	1,212
SDG&E:
Accounts receivable – trade, net	$	368	$	362
Accounts receivable – other, net	6		3
Due from unconsolidated affiliates – current⁽¹⁾	3		3
Total	$	377	$	368
SoCalGas:
Accounts receivable – trade, net	$	634	$	517
Accounts receivable – other, net	5		7
Total	$	639	$	524

⁽¹⁾

Amount is presented net of amounts due to unconsolidated affiliates on the Consolidated Balance Sheets, when right of offset exists.

INCOME TAXES

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

We provide our calculations of ETRs in the following table.



INCOME TAX EXPENSE AND EFFECTIVE INCOME TAX RATES
(Dollars in millions)
	Years ended December 31,
	2018			2017			2016
Sempra Energy Consolidated:
Income tax expense	$	96		$	1,276		$	389

Income before income taxes and equity earnings of unconsolidated entities	$	1,046		$	1,551		$	1,824
Equity (losses) earnings, before income tax⁽¹⁾	(236		)	34			6
Pretax income	$	810		$	1,585		$	1,830

Effective income tax rate	12		%	81		%	21		%
SDG&E:
Income tax expense	$	173		$	155		$	280
Income before income taxes	$	849		$	576		$	845
Effective income tax rate	20		%	27		%	33		%
SoCalGas:
Income tax expense	$	92		$	160		$	143
Income before income taxes	$	493		$	557		$	493
Effective income tax rate	19		%	29		%	29		%


⁽¹⁾	We discuss how we recognize equity earnings in Note 6.

We present in the table below reconciliations of net U.S. statutory federal income tax rates to our ETRs.



RECONCILIATION OF FEDERAL INCOME TAX RATES TO EFFECTIVE INCOME TAX RATES

	Years ended December 31,
	2018		2017		2016
Sempra Energy Consolidated:
U.S. federal statutory income tax rate	21	%	35	%	35	%
Effects of the TCJA	11		55		—
Non-U.S. earnings taxed at rates different from the U.S. statutory income tax rate⁽¹⁾	9		(3	)	(3	)
Utility depreciation	7		6		4
Foreign exchange and inflation effects⁽²⁾	4		3		(2	)
Compensation-related items	3		—		(2	)
Unrecognized income tax benefits	2		—		—
Noncontrolling interests in tax equity arrangements	2		—		—
Resolution of prior years’ income tax items	—		(2	)	—
Impairment losses at Sempra LNG & Midstream	(19	)	—		—
Utility repairs expenditures	(8	)	(6	)	(4	)
Tax credits	(6	)	(4	)	(3	)
State income taxes, net of federal income tax benefit	(5	)	1		1
Self-developed software expenditures	(4	)	(4	)	(3	)
Allowance for equity funds used during construction	(3	)	(3	)	(2	)
Amortization of excess deferred income taxes	(2	)	—		—
Merger-related transaction costs	(1	)	—		—
Other, net	1		3		—
Effective income tax rate	12	%	81	%	21	%
SDG&E:
U.S. federal statutory income tax rate	21	%	35	%	35	%
State income taxes, net of federal income tax benefit	5		3		5
Depreciation	3		7		5
Effects of the TCJA	—		5		—
Resolution of prior years’ income tax items	—		(4	)	(1	)
Compensation-related items	—		—		(1	)
Repairs expenditures	(3	)	(8	)	(4	)
Self-developed software expenditures	(2	)	(6	)	(3	)
Allowance for equity funds used during construction	(2	)	(4	)	(2	)
Amortization of excess deferred income taxes	(1	)	—		—
Other, net	(1	)	(1	)	(1	)
Effective income tax rate	20	%	27	%	33	%
SoCalGas:
U.S. federal statutory income tax rate	21	%	35	%	35	%
Depreciation	7		9		9
Unrecognized income tax benefits	4		—		—
State income taxes, net of federal income tax benefit	2		3		2
Compensation-related items	1		—		(1	)
Repairs expenditures	(7	)	(8	)	(9	)
Self-developed software expenditures	(3	)	(5	)	(6	)
Allowance for equity funds used during construction	(2	)	(3	)	(2	)
Amortization of excess deferred income taxes	(2	)	—		—
Resolution of prior years’ income tax items	(1	)	(2	)	2
Other, net	(1	)	—		(1	)
Effective income tax rate	19	%	29	%	29	%


⁽¹⁾	Related to operations in Mexico, Chile and Peru.

⁽²⁾

On December 22, 2017, the TCJA was signed into law. This legislation significantly changed the IRC. Under U.S. GAAP, certain effects of the TCJA were required to be recognized upon enactment, and, as a result, Sempra Energy, SDG&E, and SoCalGas recorded these effects in 2017.

The TCJA reduced the U.S. statutory corporate income tax rate from 35 percent to 21 percent, effective January 1, 2018. U.S. GAAP requires that deferred income tax assets and liabilities, including NOLs, be remeasured at the income tax rate expected to apply when those temporary differences reverse and that the effects of any change to such income tax rate be recognized in the period when the change was enacted. This remeasurement resulted in significant reductions in deferred income tax balances at Sempra Energy Consolidated, SDG&E and SoCalGas in 2017.

The remeasurement of deferred income tax balances at SDG&E and SoCalGas resulted in excess deferred income taxes that previously have been collected from ratepayers at the higher rate. As we discuss in Note 4, these excess deferred income taxes have been recorded as regulatory liabilities at December 31, 2018 and 2017 and will generally be refunded to ratepayers in accordance with the IRC’s normalization provisions and as determined by the CPUC and the FERC. Certain components of deferred income taxes could be attributed to shareholders rather than ratepayers. These components include deferred income taxes generated by activities outside of ratemaking.

We recorded the effects of the TCJA in 2017 using our best estimates and the information available to us through the date those financial statements were issued. In 2018, we adjusted our 2017 provisional estimates and completed our accounting for the income tax effects of the TCJA as permitted by ASU 2018-05, which we describe in Note 2. The primary impacts of the TCJA recorded in 2017 and the related 2018 adjustments were:

▪

Lower U.S. statutory corporate income tax rate: We remeasured our deferred income tax balances because of the change in the U.S. statutory corporate federal income tax rate from 35 percent to 21 percent, which resulted in income tax expense of $182 million for the year ended December 31, 2017 for Sempra Energy Consolidated. In 2018, we recorded $20 million of income tax expense to adjust the 2017 provisional remeasurement amount. SDG&E’s and SoCalGas’ impacts were primarily offset with adjustments to regulatory liabilities; however, they also recorded $28 million and $2 million of income tax expense, respectively, for the year ended December 31, 2017. In 2018, adjustments to 2017 provisional estimates included a decrease of $38 million at SDG&E and an increase of $5 million at SoCalGas of deferred income tax liabilities, with each amount offset by a change in their respective regulatory liabilities.

▪

Deemed repatriation: Sempra Energy recorded income tax expense of $328 million for the year ended December 31, 2017 associated with the one-time deemed repatriation tax on foreign undistributed earnings. In 2018, we accrued income tax benefit of $8 million to adjust our 2017 provisional estimate. We anticipate that we will repatriate our foreign undistributed earnings (estimated to be approximately $4 billion) that have been taxed at the U.S. federal level as a result of the deemed repatriation tax. In 2018, we repatriated $338 million to the U.S. and expect to repatriate an additional $3.7 billion in the foreseeable future as cash is generated by our businesses at the local level through operations or sale. In addition to the deemed repatriation tax, we accrued $360 million in 2017 of U.S. state and non-U.S. withholding tax on our expected future repatriation of foreign undistributed earnings. In 2018, we accrued additional income tax expense of $44 million to adjust our 2017 provisional estimates.


▪	Global intangible low-taxed income: In 2018, Sempra Energy recorded a partial valuation allowance of $29 million against its federal NOL carryforward as of December 31, 2017 due to the impact of the global intangible low-taxed income provisions of the TCJA.

The table below summarizes the effects of the TCJA in 2018 and 2017:



EFFECTS OF THE TAX CUTS AND JOBS ACT OF 2017
(Dollars in millions)
	Sempra Energy Consolidated			SDG&E			SoCalGas
2018:
Consolidated Balance Sheets:
Increase (decrease) in net deferred income tax liabilities
due to remeasurement	$	16		$	(38	)	$	5
Increase (decrease) in net regulatory liabilities from
remeasurement of deferred income tax assets and liabilities	$	33		$	38		$	(5	)

Consolidated Statements of Operations:
Income tax expense related to remeasurement of deferred
income tax assets and liabilities	$	49		$	—		$	—
Income tax benefit related to deemed repatriation	(8		)	—			—
U.S. state and non-U.S. withholding tax expense related to
expected future repatriation of foreign earnings	44			—			—
Total increase in income tax expense	$	85		$	—		$	—
2017:
Consolidated Balance Sheets:
Decrease in net deferred income tax liabilities due
to remeasurement	$	(2,220	)	$	(1,400	)	$	(972	)
Increase in net regulatory liabilities from remeasurement of
deferred income tax assets and liabilities	$	2,402		$	1,428		$	974

Consolidated Statements of Operations:
Income tax expense related to remeasurement of deferred
income tax assets and liabilities	$	182		$	28		$	2
Income tax expense related to deemed repatriation	328			—			—
U.S. state and non-U.S. withholding tax expense related to
expected future repatriation of foreign earnings	360			—			—
Total increase in income tax expense	$	870		$	28		$	2

We have not recorded deferred income taxes with respect to remaining basis differences of approximately $1 billion between financial statement and income tax investment amounts in our non-U.S. subsidiaries because we consider them to be indefinitely reinvested as of December 31, 2018. It is currently not practicable to determine the hypothetical amount of tax that might be payable if the underlying basis differences were realized. On January 25, 2019, our board of directors approved a plan to sell our South American businesses. We are evaluating the effects of the planned sale on our indefinite reinvestment assertion and expect to record any impacts to our tax provision in the first quarter of 2019.

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


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


▪	the equity portion of AFUDC, which is non-taxable;


▪	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; and


▪	state income taxes.

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

The 2016 GRC FD required SDG&E and SoCalGas to each establish a two-way income tax expense memorandum account to track certain revenue variances resulting from certain differences between the income tax expense forecasted in the GRC and the income tax expense incurred from 2016 through 2018. We discuss the tracking accounts further in Note 4.

We record income tax (expense) benefit from the transactional effects of foreign currency and inflation. Such effects are partially mitigated by net gains (losses) from foreign currency derivatives that are hedging Sempra Mexico parent’s exposure to movements in the Mexican peso from its controlling interest in IEnova.

The table below presents the geographic components of pretax income.



PRETAX INCOME – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Years ended December 31,
	2018			2017		2016
By geographic components:
U.S.	$	(102	)	$	878	$	773
Non-U.S.	912			707		1,057
Total⁽¹⁾	$	810		$	1,585	$	1,830


⁽¹⁾	See “Income Tax Expense and Effective Income Tax Rates” table above for calculation of pretax income.

U.S. pretax income was lower in 2018 compared to 2017 due to the 2018 impairment of certain assets at Sempra LNG & Midstream and Sempra Renewables (discussed in Notes 5 and 12), offset by the 2018 gain on the sale of assets at Sempra Renewables (discussed in Note 5) and the 2017 write-off of SDG&E’s wildfire regulatory asset (discussed in Note 16). Non-U.S. pretax income was lower in 2017 compared to 2016 primarily due to the noncash gain in 2016 associated with the remeasurement of our equity interest in IEnova Pipelines (discussed in Note 5).

The components of income tax expense are as follows.



INCOME TAX EXPENSE (BENEFIT)
(Dollars in millions)
	Years ended December 31,
	2018			2017			2016
Sempra Energy Consolidated:
Current:
U.S. federal	$	(2	)	$	—		$	—
U.S. state	66			—			1
Non-U.S.	214			116			171
Total	278			116			172
Deferred:
U.S. federal	(120		)	536			78
U.S. state	(159		)	297			9
Non-U.S.	101			327			135
Total	(178		)	1,160			222
Deferred investment tax credits	(4		)	—			(5		)
Total income tax expense	$	96		$	1,276		$	389
SDG&E:
Current:
U.S. federal	$	104		$	100		$	—
U.S. state	30			65			22
Total	134			165			22
Deferred:
U.S. federal	17			29			223
U.S. state	24			(41		)	38
Total	41			(12		)	261
Deferred investment tax credits	(2		)	2			(3		)
Total income tax expense	$	173		$	155		$	280
SoCalGas:
Current:
U.S. federal	$	4		$	—		$	—
U.S. state	10			23			40
Total	14			23			40
Deferred:
U.S. federal	78			144			123
U.S. state	2			(5		)	(18		)
Total	80			139			105
Deferred investment tax credits	(2		)	(2		)	(2		)
Total income tax expense	$	92		$	160		$	143

The tables below present the components of deferred income taxes:



DEFERRED INCOME TAXES – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	December 31,
	2018		2017
Deferred income tax liabilities:
Differences in financial and tax bases of fixed assets, investments and other assets⁽¹⁾	$	3,780	$	4,233
U.S. state and non-U.S. withholding tax on repatriation of foreign earnings	382		360
Regulatory balancing accounts	359		376
Property taxes	41		37
Other deferred income tax liabilities	130		117
Total deferred income tax liabilities	4,692		5,123
Deferred income tax assets:
Tax credits	1,114		1,066
Net operating losses	725		968
Compensation-related items	181		199
Postretirement benefits	255		251
Other deferred income tax assets	92		115
Accrued expenses not yet deductible	69		60
Deferred income tax assets before valuation allowances	2,436		2,659
Less: valuation allowances	164		133
Total deferred income tax assets	2,272		2,526
Net deferred income tax liability⁽²⁾	$	2,420	$	2,597


⁽¹⁾	In addition to the financial over tax basis differences in fixed assets, the amount also includes financial over tax basis differences in various interests in partnerships and certain subsidiaries.


⁽²⁾	At December 31, 2018 and 2017, includes $151 million and $170 million, respectively, recorded as a noncurrent asset and $2,571 million and $2,767 million, respectively, recorded as a noncurrent liability on the Consolidated Balance Sheets.



DEFERRED INCOME TAXES – SDG&E AND SOCALGAS
(Dollars in millions)
	SDG&E				SoCalGas
	December 31,				December 31,
	2018		2017		2018		2017
Deferred income tax liabilities:
Differences in financial and tax bases of
utility plant and other assets	$	1,578	$	1,472	$	1,077	$	987
Regulatory balancing accounts	84		113		283		271
Property taxes	29		26		13		12
Other	10		10		2		1
Total deferred income tax liabilities	1,701		1,621		1,375		1,271
Deferred income tax assets:
Net operating losses	—		—		—		58
Tax credits	6		7		3		15
Postretirement benefits	58		43		140		152
Compensation-related items	5		5		25		25
State income taxes	6		14		3		7
Accrued expenses not yet deductible	4		3		13		12
Other	6		19		14		7
Total deferred income tax assets	85		91		198		276
Net deferred income tax liability	$	1,616	$	1,530	$	1,177	$	995

The following table summarizes our unused NOLs and tax credit carryforwards.



NET OPERATING LOSSES AND TAX CREDIT CARRYFORWARDS
(Dollars in millions)
	Unused amount at December 31, 2018		Year expiration begins
Sempra Energy Consolidated:
U.S. federal:
NOLs⁽¹⁾	$	2,688	2031
General business tax credits⁽¹⁾	417		2032
Foreign tax credits⁽²⁾	624		2024
U.S. state⁽²⁾:
NOLs	1,942		2019
General business tax credits	82		2019
Non-U.S.⁽²⁾
NOLs	264		2019


⁽¹⁾	We have recorded deferred income tax benefits on these NOLs and tax credits, in total, because we currently believe they will be realized on a more-likely-than-not-basis.


⁽²⁾	We have not recorded deferred income tax benefits on a portion of these NOLs and tax credits because we currently believe they will not be realized on a more-likely-than-not-basis, as discussed below.

At December 31, 2018, Sempra Energy recorded a valuation allowance against a portion of its total deferred income tax assets, as shown above in the “Deferred Income Taxes – Sempra Energy Consolidated” table. A valuation allowance is recorded when, based on more-likely-than-not criteria, negative evidence outweighs positive evidence with regard to our ability to realize a deferred income tax asset in the future. Of the valuation allowances recorded to date, the negative evidence outweighs the positive evidence primarily due to cumulative pretax losses in various U.S. state and non-U.S. jurisdictions resulting in a deferred income tax asset related to NOLs, as shown in the “Net Operating Losses and Tax Credit Carryforwards” table above, that we currently do not believe will be realized on a more-likely-than-not basis. Of Sempra Energy’s total valuation allowance of $164 million at December 31, 2018, $20 million is related to non-U.S. NOLs and tax credits, $35 million to U.S. state NOLs and tax credits and $109 million to U.S. NOLs and foreign tax credits. Of Sempra Energy’s total valuation allowance of $133 million at December 31, 2017, $20 million was related to non-U.S. NOLs and tax credits, $30 million to U.S. state NOLs and tax credits and $83 million to U.S. foreign tax credits.

Following is a reconciliation of the changes in unrecognized income tax benefits and the potential effect on our ETR for the years ended December 31:



RECONCILIATION OF UNRECOGNIZED INCOME TAX BENEFITS
(Dollars in millions)
	2018			2017			2016
Sempra Energy Consolidated:
Balance at January 1	$	89		$	90		$	87
Increase in prior period tax positions	7			22			2
Decrease in prior period tax positions	(1		)	(15		)	(2		)
Increase in current period tax positions	24			4			6
Settlements with taxing authorities	—			(12		)	(3		)
Balance at December 31	$	119		$	89		$	90
Of December 31 balance, amounts related to tax positions that
if recognized in future years would
decrease the effective tax rate⁽¹⁾	$	(107	)	$	(77	)	$	(87	)
increase the effective tax rate⁽¹⁾	24			20			36
SDG&E:
Balance at January 1	$	10		$	22		$	20
Increase in prior period tax positions	1			9			—
Decrease in prior period tax positions	—			(11		)	—
Increase in current period tax positions	—			—			2
Settlements with taxing authorities	—			(10		)	—
Balance at December 31	$	11		$	10		$	22
Of December 31 balance, amounts related to tax positions that
if recognized in future years would
decrease the effective tax rate⁽¹⁾	$	(9	)	$	(7	)	$	(19	)
increase the effective tax rate⁽¹⁾	1			1			13
SoCalGas:
Balance at January 1	$	35		$	29		$	27
Increase in prior period tax positions	2			3			—
Decrease in prior period tax positions	—			—			(2		)
Increase in current period tax positions	24			4			4
Settlements with taxing authorities	—			(1		)	—
Balance at December 31	$	61		$	35		$	29
Of December 31 balance, amounts related to tax positions that
if recognized in future years would
decrease the effective tax rate⁽¹⁾	$	(51	)	$	(26	)	$	(29	)
increase the effective tax rate⁽¹⁾	23			20			24


⁽¹⁾	Includes temporary book and tax differences that are treated as flow-through for ratemaking purposes, as discussed above.

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



POSSIBLE DECREASES IN UNRECOGNIZED INCOME TAX BENEFITS WITHIN 12 MONTHS
(Dollars in millions)
	At December 31,
	2018			2017			2016
Sempra Energy Consolidated:
Expiration of statutes of limitations on tax assessments	$	(1	)	$	—		$	(2	)
Potential resolution of audit issues with various
U.S. federal, state and local and non-U.S. taxing authorities	(40		)	(8		)	(36		)
	$	(41	)	$	(8	)	$	(38	)
SDG&E:
Expiration of statutes of limitations on tax assessments	$	—		$	—		$	(1	)
Potential resolution of audit issues with various
U.S. federal, state and local taxing authorities	(6		)	(6		)	(10		)
	$	(6	)	$	(6	)	$	(11	)
SoCalGas:
Potential resolution of audit issues with various
U.S. federal, state and local taxing authorities	$	(2	)	$	(2	)	$	(25	)

Amounts accrued for interest and penalties associated with unrecognized income tax benefits are included in Income Tax Expense on the Consolidated Statements of Operations. Sempra Energy Consolidated accrued $1 million and a negligible amount for interest expense and penalties at December 31, 2018 and 2017, respectively, on the Consolidated Balance Sheets, and recorded $1 million of interest expense and penalties in 2018 and negligible amounts in each of 2017 and 2016 on the Consolidated Statements of Operations. SDG&E and SoCalGas each accrued negligible amounts for interest expense and penalties at December 31, 2018 and 2017 on the Consolidated Balance Sheets, and recorded negligible amounts of interest expense and penalties in each of 2018, 2017 and 2016 on the Consolidated Statements of Operations.

INCOME TAX AUDITS

Sempra Energy is subject to U.S. federal income tax as well as income tax of multiple state and non-U.S. jurisdictions. We remain subject to examination for U.S. federal tax years after 2014. We are subject to examination by major state tax jurisdictions for tax years after 2008. Certain major non-U.S. income tax returns for tax years 2008 through the present are open to examination. We are also open to examination for non-U.S. income tax returns related to our prior interest in our commodities business, which we divested in 2010, for years 1999 through 2010.

In addition, we have filed state refund claims for tax years back to 2006. The pre-2009 tax years for our major state tax jurisdictions are closed to new issues; therefore, no additional tax may be assessed by the taxing authorities for these tax years.

SDG&E and SoCalGas are subject to U.S. federal income tax as well as income tax of state jurisdictions. They remain subject to examination for U.S. federal tax years after 2014 and by state tax jurisdictions for tax years after 2008.

SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT - FOOTNOTES (Details) - USD ($)
$ in Millions

12 Months Ended

Jan. 01, 2019

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Basis of Presentation

Rabbi trust investment gains

$ 6

$ 12

Gain (loss) on settlement

(7)

(21)

New Accounting Standards

Deferred income taxes

151

170

Property, plant and equipment, net

36,796

36,503

Other

970

816

Retained earnings

10,104

10,147

Other (expense) income, net

233

^[1]

138

^[1]

Debt Instruments [Abstract]

Current portion of long-term debt

(1,673)

(1,427)

Long-term debt

21,611

16,445

Long-term Debt, Fiscal Year Maturity [Abstract]

1,654

1,619

2,125

682

1,821

14,166

Accounting Standards Update 2017-07 [Member]

New Accounting Standards

Other (expense) income, net

233

138

Accounting Standards Update 2017-07 [Member] | As previously reported [Member]

New Accounting Standards

Other (expense) income, net

254

132

Accounting Standards Update 2017-07 [Member] | Effect of adoption [Member]

New Accounting Standards

Other (expense) income, net

(21)

Parent Company [Member]

Basis of Presentation

Rabbi trust investment gains

(6)

New Accounting Standards

Deferred income taxes

1,554

1,802

Other

527

396

Other long-term liabilities

511

505

Operation and maintenance

(82)

(80)

^[1]

(76)

^[1]

Other (expense) income, net

(16)

100

^[1]

(7)

^[1]

Debt Instruments [Abstract]

Gross long-term debt

11,238

6,737

Market value adjustments for interest rate swaps, net

(1)

Build-to-suit lease

138

Current portion of long-term debt

(1,498)

(500)

Unamortized discount on long-term debt

(38)

(13)

Unamortized debt issuance costs

(55)

(26)

Long-term debt

9,647

6,198

Long-term Debt, Fiscal Year Maturity [Abstract]

1,500

1,400

1,500

500

1,000

5,200

Parent Company [Member] | Other Long-term Debt, Due June 2018 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 500

Stated percentage rate

6.15%

Parent Company [Member] | Other Long-term Debt, Due February 2019 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 500

Stated percentage rate

9.80%

Parent Company [Member] | Other Long-term Debt, October 2019 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 500

500

Stated percentage rate

1.625%

Parent Company [Member] | Other Long Term Debt Due February 2020 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 500

Stated percentage rate

2.40%

Parent Company [Member] | Other Long Term Debt Due March 2020 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 500

500

Stated percentage rate

2.40%

Parent Company [Member] | Other Long Term Debt, Due November 2020 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 400

400

Stated percentage rate

2.85%

Parent Company [Member] | Other Long-term Debt, Due January 2021 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 700

Stated percentage rate

2.94%

Parent Company [Member] | Other Long Term Debt, Due March 2021 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 850

850

Stated percentage rate

3.24%

Parent Company [Member] | Other Long-term Debt, Due February 2023 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 500

Stated percentage rate

2.90%

Parent Company [Member] | Other Long-term Debt, Due July 2019 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 500

Stated percentage rate

2.69%

Parent Company [Member] | Other Long-term Debt, Due October 2022 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 500

500

Stated percentage rate

2.875%

Parent Company [Member] | Other Long-term Debt, Due December 2023 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 500

500

Stated percentage rate

4.05%

Parent Company [Member] | Other Long Term Debt Due June 2024 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 500

500

Stated percentage rate

3.55%

Parent Company [Member] | Other Long Term Debt Due February 2028 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 1,000

Stated percentage rate

3.40%

Parent Company [Member] | Other Long Term Debt Due February 2038 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 1,000

Stated percentage rate

3.80%

Parent Company [Member] | Other Long-term Debt, Due November 2025 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 350

350

Stated percentage rate

3.75%

Parent Company [Member] | Other Long Term Debt Due February 2048 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 800

Stated percentage rate

4.00%

Parent Company [Member] | Other Long Term Debt Due June 2027 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 750

750

Stated percentage rate

3.25%

Parent Company [Member] | Other Long-term Debt, Due October 2039 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 750

750

Stated percentage rate

6.00%

Parent Company [Member] | Accounting Standards Update 2017-07 [Member]

New Accounting Standards

Operation and maintenance

(80)

(76)

Other (expense) income, net

100

(7)

Parent Company [Member] | Accounting Standards Update 2017-07 [Member] | As previously reported [Member]

New Accounting Standards

Operation and maintenance

(87)

(81)

Other (expense) income, net

107

(2)

Parent Company [Member] | Accounting Standards Update 2017-07 [Member] | Effect of adoption [Member]

New Accounting Standards

Operation and maintenance

Other (expense) income, net

(7)

(5)

Parent Company [Member] | Foreign exchange instruments [Member]

Basis of Presentation

Gain (loss) on settlement

$ 3

$ (28)

Sempra Energy [Member]

Debt Instruments [Abstract]

Build-to-suit lease

138

Sempra Energy [Member] | Other Long-term Debt, Due June 2018 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 500

Stated percentage rate

6.15%

Sempra Energy [Member] | Other Long-term Debt, Due February 2019 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 500

Stated percentage rate

9.80%

Sempra Energy [Member] | Other Long-term Debt, October 2019 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 500

500

Stated percentage rate

1.625%

Sempra Energy [Member] | Other Long Term Debt Due February 2020 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 500

Sempra Energy [Member] | Other Long Term Debt Due March 2020 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 500

500

Stated percentage rate

2.40%

Sempra Energy [Member] | Other Long Term Debt, Due November 2020 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 400

400

Stated percentage rate

2.85%

Sempra Energy [Member] | Other Long-term Debt, Due January 2021 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 700

Sempra Energy [Member] | Other Long Term Debt, Due March 2021 [Member]

Debt Instruments [Abstract]

Gross long-term debt

850

Sempra Energy [Member] | Other Long-term Debt, Due February 2023 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 500

Stated percentage rate

2.90%

Sempra Energy [Member] | Other Long-term Debt, Due July 2019 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 500

Stated percentage rate

2.69%

Sempra Energy [Member] | Other Long-term Debt, Due October 2022 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 500

500

Stated percentage rate

2.875%

Sempra Energy [Member] | Other Long-term Debt, Due December 2023 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 500

500

Stated percentage rate

4.05%

Sempra Energy [Member] | Other Long Term Debt Due June 2024 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 500

500

Stated percentage rate

3.55%

Sempra Energy [Member] | Other Long Term Debt Due February 2028 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 1,000

Sempra Energy [Member] | Other Long Term Debt Due February 2038 [Member]

Debt Instruments [Abstract]

Gross long-term debt

1,000

Sempra Energy [Member] | Other Long-term Debt, Due November 2025 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 350

350

Stated percentage rate

3.75%

Sempra Energy [Member] | Other Long Term Debt Due February 2048 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 800

Stated percentage rate

4.00%

Sempra Energy [Member] | Other Long Term Debt Due June 2027 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 750

750

Stated percentage rate

3.25%

Sempra Energy [Member] | Other Long-term Debt, Due October 2039 [Member]

Debt Instruments [Abstract]

Gross long-term debt

$ 750

Stated percentage rate

6.00%

Scenario, Forecast [Member] | Accounting Standards Update 2018-02 [Member]

New Accounting Standards

Retained earnings

$ 40

Scenario, Forecast [Member] | Accounting Standards Update 2016-02 [Member]

New Accounting Standards

Right-of-use assets - operating leases

623

Property, plant and equipment, net

(147)

Other

Retained earnings

Scenario, Forecast [Member] | Parent Company [Member] | Accounting Standards Update 2018-02 [Member]

New Accounting Standards

Tax Cuts and Jobs Act of 2017, reclassification From AOCI to retained earnings, tax effect

Scenario, Forecast [Member] | Parent Company [Member] | Accounting Standards Update 2016-02 [Member]

New Accounting Standards

Right-of-use assets - operating leases

191

Deferred income taxes

(3)

Property, plant and equipment, net

(147)

Other

Long-term debt

(138)

Other long-term liabilities

159

Retained earnings

$ 17

[1]	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1.

SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

We have seven separately managed reportable segments, as follows:


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


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


▪	Sempra Texas Utility holds our investment in Oncor Holdings, which owns an 80.25-percent interest in Oncor, a regulated electric transmission and distribution utility serving customers in the north-central, eastern and western parts of Texas. As we discuss in Note 5, we completed our acquisition of the investment in March 2018.


▪	Sempra South American Utilities develops, owns and operates, or holds interests in, electric transmission, distribution and generation infrastructure in Chile and Peru. In January 2019, our board of directors approved a plan to sell our South American businesses. We expect to complete the sales process by the end of 2019.


▪	Sempra Mexico develops, owns and operates, or holds interests in, natural gas, electric, LNG, LPG, ethane and liquid fuels infrastructure, and has marketing operations for the purchase of LNG and the purchase and sale of natural gas in Mexico.

▪

Sempra Renewables develops, owns and operates, or holds interests in, wind and solar power generation facilities serving wholesale electricity markets in the U.S. As we discuss in Note 5, in June 2018, our board of directors approved a plan to market and sell all the segment’s wind assets and investments and solar assets and investments. In December 2018, Sempra Renewables completed the sale of all its operating solar assets, solar and battery storage development projects and one wind generation facility. In February 2019, Sempra Renewables entered into an agreement to sell its remaining wind assets and investments. We expect to complete the sale in the second quarter of 2019.

▪

Sempra LNG & Midstream develops, owns and operates, or holds interests in, terminals for the import and export of LNG and sale of natural gas, and natural gas pipelines, storage facilities and marketing operations, all within the U.S. As we discuss in Note 5, in June 2018, our board of directors approved a plan to market and sell our natural gas storage assets at Mississippi Hub and our 90.9-percent ownership interest in Bay Gas. In February 2019, Sempra LNG & Midstream completed the sale of these assets.

We evaluate each segment’s performance based on its contribution to Sempra Energy’s reported earnings and cash flows. 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.

The cost of common services shared by the business segments is 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.



SEGMENT INFORMATION
(Dollars in millions)
	Years ended December 31,
	2018			2017			2016
REVENUES
SDG&E	$	4,568		$	4,476		$	4,253
SoCalGas	3,962			3,785			3,471
Sempra South American Utilities	1,585			1,567			1,556
Sempra Mexico	1,376			1,196			725
Sempra Renewables	124			94			34
Sempra LNG & Midstream	472			540			508
Adjustments and eliminations	(3		)	(1		)	—
Intersegment revenues⁽¹⁾	(397		)	(450		)	(364		)
Total	$	11,687		$	11,207		$	10,183
INTEREST EXPENSE
SDG&E	$	221		$	203		$	195
SoCalGas	115			102			97
Sempra South American Utilities	40			38			38
Sempra Mexico	120			97			13
Sempra Renewables	19			15			4
Sempra LNG & Midstream	21			39			43
All other	496			284			282
Intercompany eliminations	(107		)	(119		)	(119		)
Total	$	925		$	659		$	553
INTEREST INCOME
SDG&E	$	4		$	—		$	—
SoCalGas	2			1			1
Sempra South American Utilities	31			28			21
Sempra Mexico	65			23			6
Sempra Renewables	12			7			5
Sempra LNG & Midstream	49			56			71
All other	14			—			—
Intercompany eliminations	(73		)	(69		)	(78		)
Total	$	104		$	46		$	26
DEPRECIATION AND AMORTIZATION
SDG&E	$	688		$	670		$	646
SoCalGas	556			515			476
Sempra South American Utilities	58			54			49
Sempra Mexico	175			156			77
Sempra Renewables	27			38			6
Sempra LNG & Midstream	26			42			47
All other	19			15			11
Total	$	1,549		$	1,490		$	1,312
INCOME TAX EXPENSE (BENEFIT)
SDG&E	$	173		$	155		$	280
SoCalGas	92			160			143
Sempra South American Utilities	95			80			80
Sempra Mexico	185			227			188
Sempra Renewables	71			(226		)	(38		)
Sempra LNG & Midstream	(435		)	(119		)	(80		)
All other	(85		)	999			(184		)
Total	$	96		$	1,276		$	389



SEGMENT INFORMATION (CONTINUED)
(Dollars in millions)
	Years ended December 31 or at December 31,
	2018			2017			2016
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES
SDG&E	$	669		$	407		$	570
SoCalGas⁽²⁾	400			396			349
Sempra Texas Utility	371			—			—
Sempra South American Utilities	199			186			156
Sempra Mexico	237			169			463
Sempra Renewables	328			252			55
Sempra LNG & Midstream	(617		)	150			(107		)
All other⁽²⁾	(663		)	(1,304		)	(116		)
Total	$	924		$	256		$	1,370
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT
SDG&E	$	1,542		$	1,555		$	1,399
SoCalGas	1,538			1,367			1,319
Sempra South American Utilities	240			244			194
Sempra Mexico	368			248			330
Sempra Renewables	51			497			835
Sempra LNG & Midstream	31			20			117
All other	14			18			20
Total	$	3,784		$	3,949		$	4,214
ASSETS
SDG&E	$	19,225		$	17,844		$	17,719
SoCalGas	15,389			14,159			13,424
Sempra Texas Utility	9,652			—			—
Sempra South American Utilities	4,107			4,060			3,591
Sempra Mexico	9,165			8,554			7,542
Sempra Renewables	2,549			2,898			3,644
Sempra LNG & Midstream	4,060			4,872			5,564
All other	731			915			475
Intersegment receivables	(4,240		)	(2,848		)	(4,173		)
Total	$	60,638		$	50,454		$	47,786
GEOGRAPHIC INFORMATION
Long-lived assets⁽³⁾:
United States	$	40,611		$	31,487		$	28,351
Mexico	5,800			5,363			4,814
South America	2,374			2,180			1,863
Total	$	48,785		$	39,030		$	35,028
Revenues⁽⁴⁾:
United States	$	8,840		$	8,547		$	8,004
South America	1,585			1,567			1,556
Mexico	1,262			1,093			623
Total	$	11,687		$	11,207		$	10,183


⁽¹⁾	Revenues for reportable segments include intersegment revenues of $4 million, $64 million, $114 million and $215 million for 2018, $7 million, $74 million, $103 million, and $266 million for 2017, and $6 million, $76 million, $102 million and $180 million for 2016 for SDG&E, SoCalGas, Sempra Mexico and Sempra LNG & Midstream, respectively.


⁽²⁾	After preferred dividends.


⁽³⁾	Includes net PP&E and investments.

⁽⁴⁾

Amounts are based on where the revenue originated, after intercompany eliminations.

SAN ONOFRE NUCLEAR GENERATING STATION (SONGS) - ASSET RETIREMENT OBLIGATION AND SPENT NUCLEAR FUEL (Details) - USD ($) $ in Millions		1 Months Ended			12 Months Ended
	Apr. 18, 2016	Jul. 31, 2018	May 31, 2017	May 31, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Jointly Owned Utility Plant Interests [Line Items]
Decrease in regulatory balancing account					$ (263)	$ (108)	$ (198)
San Diego Gas and Electric Company [Member]
Jointly Owned Utility Plant Interests [Line Items]
Decommissioning liability					626
Cost study estimate decommissioning escalated					810
Decrease in regulatory balancing account					$ (138)	$ (56)	$ (35)
San Diego Gas and Electric Company [Member] \| Total Ownership [Member]
Jointly Owned Utility Plant Interests [Line Items]
Spent nuclear fuel damages awarded	$ 162
San Diego Gas and Electric Company [Member] \| San Onofre Nuclear Generating Station (SONGS) [Member]
Jointly Owned Utility Plant Interests [Line Items]
Spent nuclear fuel damages awarded				$ 32
Decrease in regulatory asset				(23)
Decrease in regulatory balancing account				(8)
Decrease in SONGS O&M cost balancing account				$ (1)
Proceeds from Legal Settlements		$ 9	$ 9

DEBT AND CREDIT FACILITIES

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Debt and Credit Facilities

DEBT AND CREDIT FACILITIES

LINES OF CREDIT

At December 31, 2018, Sempra Energy Consolidated had an aggregate of $5.4 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 December 31, 2018 was approximately $4.2 billion. Our foreign operations have additional general purpose credit facilities aggregating $1.8 billion at December 31, 2018. Available unused credit on these lines totaled $0.8 billion at December 31, 2018.



PRIMARY U.S. COMMITTED LINES OF CREDIT
(Dollars in millions)
		At December 31, 2018
		Total facility			Commercial paper outstanding⁽¹⁾			Adjustment for combined limit			Available unused credit
Sempra Energy⁽²⁾		$	1,250		$	—		$	—		$	1,250
Sempra Global⁽³⁾		3,185			(669		)	—			2,516
California Utilities⁽⁴⁾:
	SDG&E	750			(291		)	(6		)	453
	SoCalGas	750			(256		)	(41		)	453
	Less: subject to a combined limit of $1 billion for both utilities	(500		)	—			47			(453		)
		1,000			(547		)	—			453
Total		$	5,435		$	(1,216	)	$	—		$	4,219


⁽¹⁾	Because the commercial paper programs are supported by these lines, we reflect the amount of commercial paper outstanding as a reduction to the available unused credit.


⁽²⁾	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. No letters of credit were outstanding at December 31, 2018.


⁽³⁾	Sempra Energy guarantees Sempra Global’s obligations under the credit facility.


⁽⁴⁾	The facility 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. No letters of credit were outstanding at December 31, 2018.

Related to the committed lines of credit in the table above:


▪	Each is a 5-year syndicated revolving credit agreement expiring in October 2020.


▪	Citibank N.A. serves as administrative agent for the Sempra Energy and Sempra Global facilities and JPMorgan Chase Bank, N.A. serves as administrative agent for the California Utilities combined facility.


▪	Each facility has a syndicate of 21 lenders. No single lender has greater than a 7-percent share in any facility.


▪	Sempra Energy, SDG&E and SoCalGas must maintain a ratio of indebtedness to total capitalization (as defined in each agreement) of no more than 65 percent at the end of each quarter. Each entity is in compliance with this and all other financial covenants under its respective credit facility at December 31, 2018.


▪	Borrowings bear interest at benchmark rates plus a margin that varies with Sempra Energy’s credit ratings in the case of the Sempra Energy and Sempra Global lines of credit, and with the borrowing utility’s credit rating in the case of the California Utilities line of credit.


▪	The California Utilities’ obligations under their 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.



CREDIT FACILITIES IN SOUTH AMERICA AND MEXICO
(U.S. dollar equivalent in millions)
			At December 31, 2018
		Denominated in	Total facility		Amount outstanding				Available unused credit
Sempra South American Utilities⁽¹⁾:
	Peru⁽²⁾	Peruvian sol	$	534	$	(182	)	⁽³⁾	$	352
	Chile	Chilean peso	115		—				115
Sempra Mexico:
	IEnova⁽⁴⁾	U.S. dollar	1,170		(808		)		362
Total			$	1,819	$	(990	)		$	829


¹⁾	The credit facilities were entered into to finance working capital and for general corporate purposes and expire between 2019 and 2021.


²⁾	The Peruvian facilities require a debt to equity ratio of no more than 170 percent, with which we were in compliance at December 31, 2018.


³⁾	Includes bank guarantees of $18 million.


⁴⁾	In February 2019, IEnova revised the terms of its five-year revolving credit facility by increasing the amount available under the facility from $1.17 billion to $1.5 billion, extending the expiration of the facility from August 2020 to February 2024 and increasing the syndicate of lenders from eight to 10.

Outside of these domestic and foreign committed credit facilities, we have bilateral unsecured standby letter of credit capacity with select lenders that is uncommitted and supported by reimbursement agreements. At December 31, 2018, we had approximately $598 million in standby letters of credit outstanding under these agreements.

WEIGHTED-AVERAGE INTEREST RATES

The weighted-average interest rates on the total short-term debt at Sempra Energy Consolidated were 3.01 percent and 1.92 percent at December 31, 2018 and 2017, respectively. The weighted-average interest rates on total short-term debt at SDG&E were 2.97 percent and 1.65 percent at December 31, 2018 and 2017, respectively. The weighted-average interest rates on total short-term debt at SoCalGas were 2.58 percent and 1.64 percent at December 31, 2018 and 2017, respectively.

LONG-TERM DEBT

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



LONG-TERM DEBT
(Dollars in millions)
	December 31,
	2018			2017
SDG&E
First mortgage bonds (collateralized by plant assets):
1.65% July 1, 2018⁽¹⁾	$	—		$	161
3% August 15, 2021	350			350
1.914% payable 2015 through February 2022	125			161
3.6% September 1, 2023	450			450
2.5% May 15, 2026	500			500
6% June 1, 2026	250			250
5.875% January and February 2034⁽¹⁾	176			176
5.35% May 15, 2035	250			250
6.125% September 15, 2037	250			250
4% May 1, 2039⁽¹⁾	75			75
6% June 1, 2039	300			300
5.35% May 15, 2040	250			250
4.5% August 15, 2040	500			500
3.95% November 15, 2041	250			250
4.3% April 1, 2042	250			250
3.75% June 1, 2047	400			400
4.15% May 15, 2048	400			—
	4,776			4,573
Other long-term debt:
OMEC LLC variable-rate loan (5.2925% after floating-to-fixed rate swaps effective 2007),
payable 2013 through April 2019 (collateralized by OMEC plant assets)	—			295
OMEC LLC variable-rate loan (4.7896% at December 31, 2018 except for $142 at 5.2925%
after floating-to-fixed rate swaps through April 1, 2019), payable 2019 through 2024
(collateralized by OMEC plant assets)	220			—

Capital lease obligations:
Purchased-power contracts	1,270			731
Other	2			1
	1,492			1,027
	6,268			5,600
Current portion of long-term debt	(81		)	(220		)
Unamortized discount on long-term debt	(12		)	(11		)
Unamortized debt issuance costs	(37		)	(34		)
Total SDG&E	6,138			5,335

SoCalGas
First mortgage bonds (collateralized by plant assets):
5.45% April 15, 2018	—			250
1.55% June 15, 2018	—			250
3.15% September 15, 2024	500			500
3.2% June 15, 2025	350			350
2.6% June 15, 2026	500			500
5.75% November 15, 2035	250			250
5.125% November 15, 2040	300			300
3.75% September 15, 2042	350			350
4.45% March 15, 2044	250			250
4.125% June 1, 2048	400			—
4.3% January 15, 2049	550			—
	3,450			3,000
Other long-term debt (uncollateralized):
1.875% Notes payable 2016 through May 2026⁽¹⁾	4			4
5.67% Notes January 18, 2028	5			5
Capital lease obligations	3			1
	12			10
	3,462			3,010
Current portion of long-term debt	(3		)	(501		)
Unamortized discount on long-term debt	(6		)	(7		)
Unamortized debt issuance costs	(26		)	(17		)
Total SoCalGas	3,427			2,485



LONG-TERM DEBT (CONTINUED)
(Dollars in millions)
	December 31,
	2018			2017
Sempra Energy
Other long-term debt (uncollateralized):
6.15% Notes June 15, 2018	—			500
9.8% Notes February 15, 2019	500			500
Notes at variable rates (2.69% at December 31, 2018) July 15, 2019	500			—
1.625% Notes October 7, 2019	500			500
2.4% Notes February 1, 2020	500			—
2.4% Notes March 15, 2020	500			500
2.85% Notes November 15, 2020	400			400
Notes at variable rates (2.94% at December 31, 2018) January 15, 2021⁽¹⁾	700			—
Notes at variable rates (3.24% at December 31, 2018) March 15, 2021	850			850
2.875% Notes October 1, 2022	500			500
2.9% Notes February 1, 2023	500			—
4.05% Notes December 1, 2023	500			500
3.55% Notes June 15, 2024	500			500
3.75% Notes November 15, 2025	350			350
3.25% Notes June 15, 2027	750			750
3.4% Notes February 1, 2028	1,000			—
3.8% Notes February 1, 2038	1,000			—
6% Notes October 15, 2039	750			750
4% Notes February 1, 2048	800			—
Fair value adjustments for interest rate swaps, net	—			(1		)
Build-to-suit lease⁽²⁾	138			138
Sempra South American Utilities
Other long-term debt (uncollateralized):
Chilquinta Energía – 4.25% Series B Bonds October 30, 2030	186			205
Luz del Sur
Bank loans 4.3% to 5.7% payable 2017 through December 2021	105			53
Corporate bonds at 4.75% to 8.75% payable 2014 through September 2029	432			415
Other bonds at 3.77% to 4.61% payable 2020 through May 2022	4			6
Capital lease obligations	6			6
Sempra Mexico
Other long-term debt (uncollateralized unless otherwise noted):
Notes February 8, 2018 at variable rates (2.66% after floating-to-fixed rate cross-currency
swaps effective 2013)	—			66
6.3% Notes February 2, 2023 (4.12% after cross-currency swap)	198			198
Notes at variable rates (4.88% after floating-to-fixed rate swaps effective 2014),
payable 2016 through December 2026, collateralized by plant assets	275			314
3.75% Notes January 14, 2028	300			300
Bank loans including $246 at a weighted-average fixed rate of 6.67%, $164 at variable rates
(weighted-average rate of 6.33% after floating-to-fixed rate swaps effective 2014) and $37 at variable
rates (5.82% at December 31, 2018), payable 2016 through March 2032, collateralized by plant assets	447			468
4.875% Notes January 14, 2048	540			540
Loan at variables rates (6.07% at December 31, 2018) July 31, 2028	4			—
Sempra Renewables
Other long-term debt (collateralized by project assets):
Loan at variable rates (3.325% at December 31, 2017) payable 2012 through December 2028
except for $59 at 3.668% after floating-to-fixed rate swaps effective June 2012⁽¹⁾	—			77
Sempra LNG & Midstream
Other long-term debt (uncollateralized):
Notes at 2.87% to 3.51% October 1, 2026⁽¹⁾	21			20
	13,756			9,405
Current portion of long-term debt	(1,589		)	(706		)
Unamortized discount on long-term debt	(38		)	(13		)
Unamortized premium on long-term debt	4			4
Unamortized debt issuance costs	(87		)	(65		)
Total other Sempra Energy	12,046			8,625
Total Sempra Energy Consolidated	$	21,611		$	16,445


⁽¹⁾	Callable long-term debt not subject to make-whole provisions.


⁽²⁾	We discuss this lease in Notes 2 and 16.



MATURITIES OF LONG-TERM DEBT⁽¹⁾
(Dollars in millions)
	SDG&E		SoCalGas		Other Sempra Energy		Total Sempra Energy Consolidated
2019	$	64	$	—	$	1,590	$	1,654
2020	71		—		1,548		1,619
2021	425		—		1,700		2,125
2022	62		—		620		682
2023	500		—		1,321		1,821
Thereafter	3,874		3,459		6,833		14,166
Total	$	4,996	$	3,459	$	13,612	$	22,067


⁽¹⁾	Excludes capital lease obligations, build-to-suit lease, fair value adjustments for interest rate swaps, discounts, premiums and debt issuance costs.

Various long-term obligations totaling $12.9 billion at Sempra Energy Consolidated at December 31, 2018 are unsecured. This includes unsecured long-term obligations totaling $9 million at SoCalGas. There were no unsecured long-term obligations at SDG&E.

CALLABLE LONG-TERM DEBT

At the option of Sempra Energy, SDG&E and SoCalGas, certain debt at December 31, 2018 is callable subject to premiums:



CALLABLE LONG-TERM DEBT
(Dollars in millions)
	SDG&E		SoCalGas		Other Sempra Energy		Total Sempra Energy Consolidated
Not subject to make-whole provisions	$	251	$	4	$	721	$	976
Subject to make-whole provisions	4,525		3,455		10,274		18,254

In addition, the OMEC LLC loan that we discuss below, with $220 million of outstanding borrowings at December 31, 2018, may be prepaid at OMEC LLC’s option.

FIRST MORTGAGE BONDS

The California Utilities issue first mortgage bonds secured by a lien on utility plant assets. The California Utilities may issue additional first mortgage bonds if in compliance with the provisions of their bond agreements (indentures). These indentures require, among other things, the satisfaction of pro forma earnings-coverage tests on first mortgage bond interest and the availability of sufficient mortgaged property to support the additional bonds, after giving effect to prior bond redemptions. The most restrictive of these tests (the property test) would permit the issuance, subject to CPUC authorization, of additional first mortgage bonds of $5.7 billion at SDG&E and $1.2 billion at SoCalGas at December 31, 2018.

SDG&E

In May 2018, SDG&E publicly offered and sold $400 million of 4.15-percent, first mortgage bonds maturing in 2048. SDG&E used the proceeds from the offering to repay outstanding commercial paper.

SoCalGas

In May 2018, SoCalGas publicly offered and sold $400 million of 4.125-percent, first mortgage bonds maturing in 2048. In September 2018, SoCalGas publicly offered and sold $550 million of 4.30-percent, first mortgage bonds maturing in 2049. SoCalGas used the proceeds from the offerings to repay outstanding commercial paper and for other general corporate purposes.

OTHER LONG-TERM DEBT

Sempra Energy

On January 12, 2018, we issued the following debt securities and received net proceeds of $4.9 billion (after deducting discounts and debt issuance costs of $68 million):



NOTES ISSUED IN LONG-TERM DEBT OFFERING
(Dollars in millions)
Title of each class of securities	Aggregate principal amount		Maturity	Interest payments
Notes at variable rates⁽¹⁾ due 2019	$	500	July 15, 2019	Quarterly
Notes at variable rates⁽²⁾ due 2021	700		January 15, 2021	Quarterly
2.4% Notes due 2020	500		February 1, 2020	Semi-annually
2.9% Notes due 2023	500		February 1, 2023	Semi-annually
3.4% Notes due 2028	1,000		February 1, 2028	Semi-annually
3.8% Notes due 2038	1,000		February 1, 2038	Semi-annually
4% Notes due 2048	800		February 1, 2048	Semi-annually


⁽¹⁾	Bears interest at a rate per annum equal to the 3-month LIBOR rate, plus 25 bps.


⁽²⁾	Bears interest at a rate per annum equal to the 3-month LIBOR rate, plus 50 bps.

The variable-rate notes due 2019 are not subject to redemption at our option. At our option, we may redeem some or all of the variable-rate notes due 2021 at any time on or after January 14, 2019 at the applicable redemption price per the terms of the notes. At our option, we may redeem some or all of the fixed-rate notes of each series at any time at the applicable redemption price for such series of fixed-rate notes.

The notes are unsecured and unsubordinated obligations, ranking on a parity in right of payment with all of our other unsecured and unsubordinated indebtedness and guarantees. The notes rank senior to all our existing and future indebtedness, if any, that is subordinated to the notes. The notes are effectively subordinated to any secured indebtedness we have or may incur (to the extent of the collateral securing that indebtedness) and are also effectively subordinated to all indebtedness and other liabilities of our subsidiaries.

We used a substantial portion of the net proceeds from this offering to finance a portion of the Merger Consideration and associated transaction costs, as we discuss in Note 5, and approximately $800 million to pay down commercial paper.

SDG&E

In December 2018, OMEC LLC entered into a loan agreement for $220 million, the proceeds of which were used to repay its project financing loan used for the construction of OMEC that was scheduled to mature in April 2019. The loan matures in August 2024, unless OMEC LLC exercises its put option in which case the loan will mature in November 2019. We describe the put option in Note 1. The loan bears interest at a rate per annum equal to the 3-month LIBOR rate plus 200 bps. OMEC LLC previously entered into a floating-to-fixed interest rate swap for $142 million of the project financing loan that matures on April 30, 2019, which results in a fixed rate of 5.2925 percent. In December 2018, OMEC LLC entered into new floating-to-fixed interest rate swaps to hedge future interest payments on the loan with notional amounts of $159 million that will become effective on April 30, 2019 and mature on October 31, 2019, resulting in a fixed rate of 2.765 percent, and $142 million of swaptions that, if exercised, will become effective on October 31, 2019 and mature on October 31, 2023, resulting in a fixed rate of 3.0375 percent. We provide additional information concerning the interest rate swaps in Note 11. The loan is with third party lenders and is collateralized by OMEC’s assets. SDG&E is not a party to the loan agreement and does not have any additional implicit or explicit financial responsibility to OMEC LLC, nor would SDG&E be required to assume OMEC LLC’s loan under the put option purchase scenario.

In 2017, SDG&E satisfied all of the conditions precedent for a CPUC-approved 20-year PPA with a 500-MW power plant facility. Construction of the facility was completed and delivery of contracted power commenced in December 2018, at which time we recorded a $550 million capital lease obligation on SDG&E’s and Sempra Energy’s Consolidated Balance Sheets.

Sempra South American Utilities

Luz del Sur drew bank loans in 2018 totaling $107 million, of which $61 million is included in the amounts outstanding under Peruvian credit facilities in the “Credit Facilities in South America and Mexico” table above, at interest rates ranging from 4.3 percent to 5.7 percent and maturity dates ranging from September 2020 through December 2021.

In October 2018, Luz del Sur publicly offered and sold $50 million of corporate bonds at 7 percent, which mature in October 2028.

Sempra Renewables

As we discuss in Note 5, in December 2018, Sempra Renewables completed the sale of all its operating solar assets and certain other assets. Sempra Renewables received $1.6 billion in cash proceeds and the buyer assumed debt of $70 million, net of unamortized debt issuance costs.

INTEREST RATE SWAPS

We discuss our fair value and cash flow hedging interest rate swaps in Note 11.

PREFERRED STOCK

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Preferred Stock

PREFERRED STOCK

Sempra Energy and SDG&E are authorized to issue up to 50 million and 45 million shares of preferred stock, respectively. At December 31, 2018 and 2017, SDG&E had no preferred stock outstanding. The rights, preferences, privileges and restrictions for any new series of preferred stock would be established by each company’s board of directors at the time of issuance.

SEMPRA ENERGY MANDATORY CONVERTIBLE PREFERRED STOCK

On January 9, 2018, we issued 17,250,000 shares of our 6% mandatory convertible preferred stock, series A (series A preferred stock) in a registered public offering at $100.00 per share (or $98.20 per share after deducting underwriting discounts), including 2,250,000 shares purchased by the underwriters from us as a result of fully exercising their option to purchase such shares from us solely to cover overallotments. Each share of series A preferred stock has a liquidation value of $100.00. We used the net proceeds of approximately $1.69 billion (net of underwriting discounts and equity issuance costs of $32 million) to fund a portion of the Merger Consideration, as we discuss in Note 5.

On July 13, 2018, we issued 5,750,000 shares of our 6.75% mandatory convertible preferred stock, series B (series B preferred stock) in a registered public offering at $100.00 per share (or $98.35 per share after deducting underwriting discounts), including 750,000 shares purchased by the underwriters from us as a result of fully exercising their option to purchase such shares from us solely to cover overallotments. Each share of series B preferred stock has a liquidation value of $100.00. We used the net proceeds of approximately $565 million (net of underwriting discounts and equity issuance costs of $10 million) to repay commercial paper, to fund working capital and for other general corporate purposes.

Mandatory Conversion

Unless earlier converted, each share of the series A preferred stock and series B preferred stock will automatically convert on the mandatory conversion date of January 15, 2021 and July 15, 2021, respectively. The number of shares of our common stock issuable on conversion of each series of preferred stock will be determined based on the volume-weighted average market value per share of our common stock over the 20-consecutive trading day period beginning on and including the 21st scheduled trading day immediately preceding January 15, 2021 for the series A preferred stock and July 15, 2021 for the series B preferred stock. The following table illustrates the conversion rate per share of each series of preferred stock, subject to certain anti-dilution adjustments.



CONVERSION RATES

Applicable market value per share of our common stock		Conversion rate (number of shares of our common stock to be received upon conversion of each share of mandatory convertible preferred stock)
Series A preferred stock
Greater than $131.075 (which is the threshold appreciation price)		0.7629 shares (approximately equal to $100.00 divided by the threshold appreciation price)
Equal to or less than $131.075 but greater than or equal to $107.00		Between 0.7629 and 0.9345 shares, determined by dividing $100.00 by the applicable market value of our common stock
Less than $107.00 (which is the initial price)		0.9345 shares (approximately equal to $100.00 divided by the initial price)
Series B preferred stock
Greater than $136.50 (which is the threshold appreciation price)		0.7326 shares (approximately equal to $100.00 divided by the threshold appreciation price)
Equal to or less than $136.50 but greater than or equal to $113.75		Between 0.7326 and 0.8791 shares, determined by dividing $100.00 by the applicable market value of our common stock
Less than $113.75 (which is the initial price)		0.8791 shares (approximately equal to $100.00 divided by the initial price)

Conversion at the Option of the Holder

Generally, and subject to the terms of the respective series of preferred stock, at any time prior to January 15, 2021 for the series A preferred stock and July 15, 2021 for the series B preferred stock, holders may elect to convert each share of their preferred stock into shares of our common stock at the minimum conversion rate, which could result in an aggregate of approximately 13.2 million common shares with respect to conversion of series A preferred stock and 4.2 million common shares with respect to conversion of series B preferred stock, if all outstanding preferred stock under each series were converted early, subject to anti-dilution adjustments. Further, if holders elect to convert any shares of either series of preferred stock during a specified period beginning on the effective date of a fundamental change, as defined in the certificate of determination of preferences of the respective series of preferred stock, such shares of preferred stock will be converted into shares of our common stock at a fundamental change conversion rate, and the holders will also be entitled to receive a fundamental change dividend make-whole amount and accumulated dividend amount.

Dividends

Dividends on each series of preferred stock are payable quarterly on a cumulative basis when, as and if declared by our board of directors. The first quarterly dividend for the series A preferred stock and series B preferred stock was paid on April 15, 2018 and October 15, 2018, respectively. We may pay quarterly declared dividends in cash or, subject to certain limitations, in shares of our common stock, no par value, or in any combination of cash and shares of our common stock. Shares of common stock used to pay dividends will be valued at 97 percent of the volume-weighted average price per share over the five-consecutive trading day period beginning on, and including the sixth trading day prior to, the applicable dividend payment date. The holders of each series of preferred stock do not have voting rights with respect to their preferred stock. However, under certain circumstances including nonpayment of dividends for six or more dividend periods, whether or not consecutive, the authorized number of directors on our board of directors will automatically be increased by two and the holders of each series of preferred stock, voting together as a single class with holders of any and all other outstanding preferred stock of equal rank having similar voting rights, will be

entitled to elect two directors to fill such newly created directorships. This right shall terminate when all accumulated dividends have been paid in full and the authorized number of directors shall automatically decrease by two, subject to the revesting of that right in the event of each subsequent nonpayment.

Ranking

Each series of preferred stock will rank with respect to dividend rights and distribution rights upon our liquidation, winding-up or dissolution:


▪	senior to our common stock, including our capital stock established in the future, unless the terms of such capital stock expressly provide otherwise;


▪	on parity with each series of preferred stock, including our capital stock established in the future, unless the terms of such capital stock expressly provide otherwise;


▪	junior to our capital stock established in the future, if the terms provide that such class of series of new capital stock will rank senior to the series A preferred stock and series B preferred stock;


▪	junior to our existing and future indebtedness and other liabilities; and


▪	structurally subordinated to any existing and future indebtedness and other liabilities of our subsidiaries and capital stock of our subsidiaries held by third parties.

SOCALGAS PREFERRED STOCK

SoCalGas is authorized to issue up to an aggregate of 11 million shares of preferred stock, series preferred stock and preference stock. The table below presents preferred stock outstanding at SoCalGas:



PREFERRED STOCK OUTSTANDING
(Dollars in millions, except per share amounts)
	December 31,
	2018			2017
$25 par value, authorized 1,000,000 shares:
6% Series, 79,011 shares outstanding	$	3		$	3
6% Series A, 783,032 shares outstanding	19			19
SoCalGas - Total preferred stock	22			22
Less: 50,970 shares of the 6% Series outstanding owned by Pacific Enterprises	(2		)	(2		)
Sempra Energy - Total preferred stock of subsidiary	$	20		$	20

None of SoCalGas’ outstanding preferred stock is callable, and no shares are subject to mandatory redemption.

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

In addition to the outstanding preferred stock above, SoCalGas’ articles of incorporation authorize 5 million shares of series preferred stock and 5 million shares of preference stock, both without par value and with cumulative preferences as to dividends and liquidation value. The preference stock would rank junior to all series of preferred stock and series preferred stock. Other rights and privileges of any new series of such stock would be established by the SoCalGas board of directors at the time of issuance.

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 190	$ 288
Restricted cash	35	62
Accounts receivable – trade, net	1,488	1,307
Accounts receivable – other, net	362	277
Due from unconsolidated affiliates	39	37
Income taxes receivable	68	110
Inventories	296	307
Regulatory assets	138	325
Greenhouse gas allowances	59	299
Assets held for sale	713	127
Other	257	202
Total current assets	3,645	3,341
Other assets:
Restricted cash	21	14
Due from unconsolidated affiliates	688	598
Regulatory assets	1,589	1,517
Nuclear decommissioning trusts	974	1,033
Investment in Oncor Holdings	9,652	0
Other investments	2,337	2,527
Goodwill	2,373	2,397
Other intangible assets	272	596
Dedicated assets in support of certain benefit plans	416	455
Insurance receivable for Aliso Canyon costs	461	418
Deferred income taxes	151	170
Greenhouse gas allowances	289	93
Sundry	974	792
Total other assets	20,197	10,610
Property, plant and equipment:
Property, plant and equipment	49,315	48,108
Less accumulated depreciation and amortization	(12,519)	(11,605)
Property, plant and equipment, net	36,796	36,503
Total assets	60,638	50,454
Liabilities, Current [Abstract]
Short-term debt	2,079	1,540
Accounts payable – trade	1,324	1,350
Accounts payable – other	150	173
Due to unconsolidated affiliates	10	7
Dividends and interest payable	499	342
Accrued compensation and benefits	469	439
Regulatory liabilities	105	109
Current portion of long-term debt	1,673	1,427
Reserve for Aliso Canyon costs	160	84
Greenhouse gas obligations	59	299
Liabilities held for sale	25	49
Other	970	816
Total current liabilities	7,523	6,635
Long-term debt	21,611	16,445
Deferred Credits and Other Liabilities [Abstract]
Due to unconsolidated affiliates	37	35
Pension and other postretirement benefit plan obligations, net of plan assets	1,161	1,148
Deferred income taxes	2,571	2,767
Deferred investment tax credits	24	28
Regulatory liabilities	4,016	3,922
Asset retirement obligations	2,787	2,732
Greenhouse gas obligations	131	0
Deferred credits and other	1,529	1,602
Total deferred credits and other liabilities	12,256	12,234
Commitments and contingencies (Note 16)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract]
Common stock	5,540	3,149
Retained earnings	10,104	10,147
Accumulated other comprehensive income (loss)	(764)	(626)
Total shareholders’ equity	17,138	12,670
Preferred stock of subsidiary	20	20
Other noncontrolling interests	2,090	2,450
Total equity	19,248	15,140
Total liabilities and equity	60,638	50,454
San Diego Gas and Electric Company [Member]
Current assets:
Cash and cash equivalents	8	12
Restricted cash	11	6
Accounts receivable – trade, net	368	362
Accounts receivable – other, net	106	79
Inventories	102	105
Prepaid expenses	74	58
Regulatory assets	123	316
Fixed-price contracts and other derivatives	82	42
Greenhouse gas allowances	15	116
Other	5	4
Total current assets	894	1,100
Other assets:
Restricted cash	18	11
Regulatory assets	454	451
Nuclear decommissioning trusts	974	1,033
Greenhouse gas allowances	155	83
Sundry	420	328
Total other assets	2,021	1,906
Property, plant and equipment:
Property, plant and equipment	21,662	19,787
Less accumulated depreciation and amortization	(5,352)	(4,949)
Property, plant and equipment, net	16,310	14,838
Total assets	19,225	17,844
Liabilities, Current [Abstract]
Short-term debt	291	253
Accounts payable – trade	439	501
Due to unconsolidated affiliates	61	40
Accrued compensation and benefits	117	122
Regulatory liabilities	53	18
Accrued franchise fees	64	59
Current portion of long-term debt	81	220
Asset retirement obligations	96	77
Customer deposits	70	69
Greenhouse gas obligations	15	116
Other	141	147
Total current liabilities	1,428	1,622
Long-term debt	6,138	5,335
Deferred Credits and Other Liabilities [Abstract]
Pension and other postretirement benefit plan obligations, net of plan assets	212	182
Deferred income taxes	1,616	1,530
Deferred investment tax credits	16	18
Regulatory liabilities	2,404	2,225
Asset retirement obligations	778	762
Greenhouse gas obligations	30	0
Deferred credits and other	488	544
Total deferred credits and other liabilities	5,544	5,261
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract]
Preferred stock	0	0
Common stock	1,338	1,338
Retained earnings	4,687	4,268
Accumulated other comprehensive income (loss)	(10)	(8)
Total shareholders’ equity	6,015	5,598
Other noncontrolling interests	100	28
Total equity	6,115	5,626
Total liabilities and equity	19,225	17,844
Southern California Gas Company [Member]
Current assets:
Cash and cash equivalents	18	8
Accounts receivable – trade, net	634	517
Accounts receivable – other, net	97	90
Due from unconsolidated affiliates	7	4
Inventories	134	124
Regulatory assets	12	9
Greenhouse gas allowances	37	179
Other	31	48
Total current assets	970	979
Other assets:
Regulatory assets	1,051	983
Insurance receivable for Aliso Canyon costs	461	418
Greenhouse gas allowances	116	9
Sundry	352	364
Total other assets	1,980	1,774
Property, plant and equipment:
Property, plant and equipment	18,138	16,772
Less accumulated depreciation and amortization	(5,699)	(5,366)
Property, plant and equipment, net	12,439	11,406
Total assets	15,389	14,159
Liabilities, Current [Abstract]
Short-term debt	256	116
Accounts payable – trade	556	502
Accounts payable – other	93	93
Due to unconsolidated affiliates	34	35
Accrued compensation and benefits	159	151
Regulatory liabilities	52	91
Current portion of long-term debt	3	501
Asset retirement obligations	90	68
Customer deposits	101	89
Reserve for Aliso Canyon costs	160	84
Greenhouse gas obligations	37	179
Other	217	137
Total current liabilities	1,758	2,046
Long-term debt	3,427	2,485
Deferred Credits and Other Liabilities [Abstract]
Pension obligation, net of plan assets	760	789
Deferred income taxes	1,177	995
Deferred investment tax credits	8	10
Regulatory liabilities	1,612	1,697
Asset retirement obligations	1,973	1,885
Greenhouse gas obligations	86	0
Deferred credits and other	330	345
Total deferred credits and other liabilities	5,946	5,721
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract]
Preferred stock	22	22
Common stock	866	866
Retained earnings	3,390	3,040
Accumulated other comprehensive income (loss)	(20)	(21)
Total shareholders’ equity	4,258	3,907
Total equity	4,258	3,907
Total liabilities and equity	15,389	14,159
Series A Preferred Stock [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract]
Preferred stock	1,693	0
Series B Preferred Stock [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract]
Preferred stock	$ 565	$ 0

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - GOODWILL (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 2,397	$ 2,364
Acquisition of business – measurement period adjustment		(13)
Acquisition of business	38
Foreign currency translation	(62)	46
Goodwill, ending balance	2,373	2,397
Sempra South American Utilities [Member]
Goodwill [Roll Forward]
Goodwill, beginning balance	795	749
Acquisition of business – measurement period adjustment		0
Acquisition of business	38
Foreign currency translation	(62)	46
Goodwill, ending balance	771	795
Sempra Mexico [Member]
Goodwill [Roll Forward]
Goodwill, beginning balance	1,602	1,615
Acquisition of business – measurement period adjustment		(13)
Acquisition of business	0
Foreign currency translation	0	0
Goodwill, ending balance	$ 1,602	$ 1,602

- SHARE-BASED COMPENSATION EXPENSE/ OPTIONS (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended			96 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	6,067,767			6,067,767
Number of shares authorized for issuance (in shares)	6,067,767			6,067,767
Share-based compensation expense, before income taxes	$ 76	$ 78	$ 46
Income tax benefit	(21)	(31)	(18)
Capitalized share-based compensation cost	10	9	7
Excess income tax deficiency (benefit)	15	0	(34)
Share-based compensation expense, net of taxes	$ 55	$ 47	$ 28
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Beginning balance (in shares)	195,801
Exercised (in shares)	(138,861)	(164,454)	(167,742)
Ending balance (in shares)	56,940	195,801		56,940
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Beginning balance (in dollars per share)	$ 50.30
Exercised (in dollars per share)	48.53
Ending balance (in dollars per share)	$ 54.63	$ 50.30		$ 54.63
Outstanding at period end, Weighted- average remaining contractual term	10 months 24 days
Outstanding at period end, Aggregate intrinsic value	$ 3			$ 3
Vested at period end (in shares)	56,940			56,940
Vested at period end, Weighted- average exercise price (in dollars per share)	$ 54.63			$ 54.63
Vested at period end, Weighted- average remaining contractual term	10 months 24 days
Vested at period end, Aggregate intrinsic value	$ 3			$ 3
Exercisable at period end (in shares)	56,940			56,940
Exercisable at period end, Weighted- average exercise price (in dollars per share)	$ 54.63			$ 54.63
Exercisable at period end, Weighted- average remaining contractual term	10 months 24 days
Exercisable at period end, Aggregate intrinsic value	$ 3			$ 3
Aggregate intrinsic value of options exercised	9	$ 9	$ 8
Cash received from exercise of options	7
Options grants in period (in shares)				0
San Diego Gas and Electric Company [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense, before income taxes	12	13	7
Income tax benefit	(3)	(5)	(3)
Capitalized share-based compensation cost	6	5	4
Excess income tax deficiency (benefit)	3	0	(7)
Share-based compensation expense, net of taxes	9	8	4
Southern California Gas Company [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense, before income taxes	16	17	8
Income tax benefit	(5)	(7)	(3)
Capitalized share-based compensation cost	4	4	3
Excess income tax deficiency (benefit)	2	0	(4)
Share-based compensation expense, net of taxes	$ 11	$ 10	$ 5
IENova Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Restricted stock units issued by subsidiary (in shares)	966,747	1,043,709	378,367	966,747
Restricted stock units issued by subsidiary, outstanding (in shares)	696,787			696,787
Cash paid to settle awards	$ 3	$ 2	$ 1
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Award vesting period	4 years
Expiration period	10 years
Restricted Stock Units (RSUs), Service-based [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Award requisite service period	3 years
Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Award requisite service period	4 years
Awarded during or after two thousand fifteen [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Award vesting rights maximum additional award	100.00%
Award vesting rights, Increase modifier for top quartile	20.00%
Award vesting rights, decrease modifier for bottom quartile	20.00%
Awarded during or after two thousand fifteen [Member] \| Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Award requisite service period	3 years
Awarded During Or After Two Thousand and Fourteen [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Award vesting rights maximum additional award	100.00%
Awards Before 2015 [Member] \| Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Award requisite service period	4 years
Awards Before 2015 [Member] \| Restricted Stock Units (RSUs), Service-based [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Award requisite service period	4 years
Awards Granted in 2013 and Earlier [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Award vesting rights maximum additional award	50.00%
Minimum [Member] \| Restricted Stock Units, Employee Stock Options, or Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Award requisite service period	3 years
Maximum [Member] \| Restricted Stock Units, Employee Stock Options, or Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Award requisite service period	4 years

NEW ACCOUNTING STANDARDS - INCOME STATEMENT IMPACT (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Income Statement [Abstract]

Operation and maintenance

$ 3,309

$ 3,096

^[1]

$ 2,976

^[1]

Other income, net

233

^[1]

138

^[1]

Accounting Standards Update 2017-07 [Member]

Income Statement [Abstract]

Operation and maintenance

3,096

2,976

Other income, net

233

138

Accounting Standards Update 2017-07 [Member] | As previously reported [Member]

Income Statement [Abstract]

Operation and maintenance

3,117

2,970

Other income, net

254

132

Accounting Standards Update 2017-07 [Member] | Effect of adoption [Member]

Income Statement [Abstract]

Operation and maintenance

(21)

Other income, net

(21)

San Diego Gas and Electric Company [Member]

Income Statement [Abstract]

Utilities Operation and maintenance

1,058

1,024

^[1]

1,062

^[1]

Operating income

$ 247

$ 300

$ 215

$ 248

$ 256

$ (58)

$ 237

$ 274

1,010

709

^[1]

976

^[1]

Other income, net

^[1]

San Diego Gas and Electric Company [Member] | Accounting Standards Update 2017-07 [Member]

Income Statement [Abstract]

Utilities Operation and maintenance

1,024

1,062

Operating expenses

3,767

3,277

Operating income

709

976

Other income, net

San Diego Gas and Electric Company [Member] | Accounting Standards Update 2017-07 [Member] | As previously reported [Member]

Income Statement [Abstract]

Utilities Operation and maintenance

1,020

1,048

Operating expenses

3,763

3,263

Operating income

713

990

Other income, net

San Diego Gas and Electric Company [Member] | Accounting Standards Update 2017-07 [Member] | Effect of adoption [Member]

Income Statement [Abstract]

Utilities Operation and maintenance

Operating expenses

Operating income

(4)

(14)

Other income, net

Southern California Gas Company [Member]

Income Statement [Abstract]

Utilities Operation and maintenance

1,613

1,474

^[1]

1,391

^[1]

Operating income

$ 239

$ 5

$ 69

$ 278

$ 230

$ 5

$ 80

$ 312

591

627

^[1]

551

^[1]

Other income, net

$ 15

^[1]

Southern California Gas Company [Member] | Accounting Standards Update 2017-07 [Member]

Income Statement [Abstract]

Utilities Operation and maintenance

1,474

1,391

Operating expenses

3,158

2,920

Operating income

627

551

Other income, net

Southern California Gas Company [Member] | Accounting Standards Update 2017-07 [Member] | As previously reported [Member]

Income Statement [Abstract]

Utilities Operation and maintenance

1,479

1,385

Operating expenses

3,163

2,914

Operating income

622

557

Other income, net

Southern California Gas Company [Member] | Accounting Standards Update 2017-07 [Member] | Effect of adoption [Member]

Income Statement [Abstract]

Utilities Operation and maintenance

(5)

Operating expenses

(5)

Operating income

(6)

Other income, net

$ (5)

$ 6

[1]	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1.

SAN ONOFRE NUCLEAR GENERATING STATION (SONGS) - NUCLEAR DECOMMISSIONING TRUSTS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Debt Securities, Available-for-sale [Line Items]
Cost	$ 731	$ 701
Gross unrealized gains	259	336
Gross unrealized losses	(16)	(4)
Estimated fair value	974	1,033
Proceeds from sales	890	1,314	$ 1,134
Gross realized gains	42	157	111
Gross realized losses	(10)	(14)	$ (29)
Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Cost	556	514
Gross unrealized gains	6	10
Gross unrealized losses	(6)	(3)
Estimated fair value	556	521
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies [Member]
Debt Securities, Available-for-sale [Line Items]
Cost	52	54
Gross unrealized gains	1	0
Gross unrealized losses	0	0
Estimated fair value	53	54
Municipal bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Cost	266	245
Gross unrealized gains	4	7
Gross unrealized losses	(1)	(2)
Estimated fair value	269	250
Other securities [Member]
Debt Securities, Available-for-sale [Line Items]
Cost	238	215
Gross unrealized gains	1	3
Gross unrealized losses	(5)	(1)
Estimated fair value	234	217
Equity securities [Member]
Debt Securities, Available-for-sale [Line Items]
Cost	168	171
Gross unrealized gains	253	326
Gross unrealized losses	(10)	(1)
Estimated fair value	411	496
Cash and cash equivalents [Member]
Debt Securities, Available-for-sale [Line Items]
Cost	7	16
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Estimated fair value	$ 7	$ 16

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - OTHER INCOME, NET (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Other Income [Line Items]

Allowance for equity funds used during construction

$ 98

$ 168

$ 116

Investment (losses) gains

(6)

Gains (losses) on interest rate and foreign exchange instruments, net

(32)

Foreign currency transaction losses

(5)

(35)

(1)

Non-service component of net periodic benefit (cost) credit

(37)

(21)

Electrical infrastructure relocation income

Interest on regulatory balancing accounts, net

Sundry, net

Total

233

^[1]

138

^[1]

San Diego Gas and Electric Company [Member]

Other Income [Line Items]

Allowance for equity funds used during construction

Non-service component of net periodic benefit (cost) credit

(6)

Interest on regulatory balancing accounts, net

Sundry, net

(3)

Total

^[1]

Southern California Gas Company [Member]

Other Income [Line Items]

Allowance for equity funds used during construction

Non-service component of net periodic benefit (cost) credit

(10)

(5)

Interest on regulatory balancing accounts, net

(2)

Sundry, net

(9)

(8)

(9)

Total

^[1]

$ 38

^[1]

Sempra Mexico [Member] | IMG [Member]

Other Income [Line Items]

Foreign currency transaction losses

$ (3)

$ (35)

[1]	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1.

SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2018

Share-based Compensation [Abstract]

Share-based Compensation

SHARE-BASED COMPENSATION

SEMPRA ENERGY EQUITY COMPENSATION PLANS

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


▪	non-qualified stock options;


▪	incentive stock options;


▪	restricted stock awards;


▪	restricted stock units;


▪	stock appreciation rights;


▪	performance awards;


▪	stock payments; and


▪	dividend equivalents.

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

In the three years ended December 31, 2018, Sempra Energy had the following types of equity awards outstanding:

▪

Non-Qualified Stock Options: Options to purchase common stock have an exercise price equal to the market price of the common stock at the date of grant, are service-based, become exercisable over a four-year period, and expire 10 years from the date of grant. Vesting and/or the ability to exercise may be accelerated upon a change in control, in accordance with severance pay agreements or in accordance with the terms of the grant. Options are subject to forfeiture or earlier expiration following termination of employment, subject to certain exceptions.

▪

Performance-Based Restricted Stock Units: These RSU awards generally vest in Sempra Energy common stock at the end of three-year (for awards granted during or after 2015) or four-year performance periods (for awards granted prior to 2015) based on Sempra Energy’s total return to shareholders relative to that of specified market indices or based on the compound annual growth rate of Sempra Energy’s EPS. The comparative market indices for the awards that vest based on total return to shareholders are the S&P 500 Utilities Index and the S&P 500 Index. We use long-term analyst consensus growth estimates for S&P 500 Utilities Index peer companies to develop our targets for awards that vest based on EPS growth.


◦	For awards granted in 2013 or earlier, if Sempra Energy’s total return to shareholders exceeds target levels, up to an additional 50 percent of the number of granted RSUs may be issued.


◦	For awards granted during or after 2014, up to an additional 100 percent of the granted RSUs may be issued if total return to shareholders or EPS growth exceeds target levels.

◦

For awards granted in 2015 and 2016 and certain awards granted in 2017 and 2018 that vest based on Sempra Energy’s total return to shareholders, a modifier adds 20 percent to the award’s payout (as initially calculated based on total return to shareholders relative to that of specified market indices) for total shareholder return performance in the top quartile relative to historical benchmark data for Sempra Energy and reduces the award’s payout by 20 percent for performance in the bottom quartile. However, in no event will more than an additional 100 percent of the granted RSUs be issued. If performance falls within the second or third quartiles, the modifier is not triggered, and the payout is based solely on total return to shareholders relative to that of specified market indices.

If Sempra Energy’s total return to shareholders or EPS growth is below the target levels but above threshold performance levels, shares are subject to partial vesting on a pro rata basis.


▪	Other Performance-Based Restricted Stock Units: RSUs were granted in 2014 and 2015 in connection with the creation of Cameron LNG JV.


◦	The 2014 awards vested to the extent that the Compensation Committee of Sempra Energy’s board of directors determined that the objectives of the JV were achieved. Those awards vested on the anniversary of the grant date over a period of either two or three years.


◦	The 2015 awards are expected to vest to the extent that both of the following are achieved: (a) the Compensation Committee of Sempra Energy’s board of directors determines that Sempra Energy has achieved positive cumulative net income for fiscal years 2015 through 2017 and (b) Cameron LNG JV has commenced commercial operations of the first train.


▪	Service-Based Restricted Stock Units: RSUs may also be service-based; these generally vest at the end of three-year (for awards granted during or after 2015 through 2018) or four-year service periods (for awards granted prior to 2015).


▪	Restricted Stock Awards: RSAs are solely service-based and generally vest at the end of four years of service. Accelerated vesting of RSAs may occur upon eligibility for retirement. Holders of RSAs have full voting rights.

For RSA and RSU awards, vesting may be subject to earlier forfeiture upon termination of employment and accelerated vesting upon a change in control under the applicable long-term incentive plan, in accordance with severance pay agreements, or at the discretion of the Compensation Committee of Sempra Energy’s board of directors. Dividend equivalents on shares subject to RSAs and RSUs are reinvested to purchase additional common shares that become subject to the same vesting conditions as the RSAs and RSUs to which the dividends relate.

The IEnova 2013 Long-Term Incentive Plan is intended to align the interests of employees and directors of IEnova with its shareholders. All awards issued from this plan and any related dividend equivalents will settle in cash at vesting based on the price of IEnova common stock. In 2018, 2017 and 2016, IEnova granted 966,747 RSUs, 1,043,709 RSUs and 378,367 RSUs, respectively, from this plan, 696,787 of which remain outstanding at December 31, 2018. In 2018, 2017 and 2016, IEnova paid cash of $3 million, $2 million and $1 million, respectively, to settle vested awards.

SHARE-BASED AWARDS AND COMPENSATION EXPENSE

At December 31, 2018, 6,067,767 common shares were authorized and available for future grants of share-based awards. Our practice is to satisfy share-based awards by issuing new shares rather than by open-market purchases.

We measure and recognize compensation expense for all share-based payment awards made to our employees and directors based on estimated fair values on the date of grant. We recognize compensation costs net of an estimated forfeiture rate (based on historical experience) and recognize the compensation costs for non-qualified stock options, RSAs and RSUs on a straight-line basis over the requisite service period of the award, which is generally three or four years. However, for awards granted to retirement-eligible participants, the expense is recognized over the initial year in which the award was granted. For awards granted to participants who become eligible for retirement during the requisite service period, the expense is recognized over the period between the date of grant and the later of the end of the year in which the award was granted or the date the participant first becomes eligible for retirement. Substantially all awards outstanding are classified as equity instruments; therefore, we recognize additional paid in capital as we recognize the compensation expense associated with the awards. We recognize in earnings the tax benefits (or deficiencies) resulting from tax deductions that are in excess of (or less than) tax benefits related to compensation cost recognized for share-based payments.

Sempra Energy subsidiaries record an expense for the plans to the extent that subsidiary employees participate in the plans and/or the subsidiaries are allocated a portion of the Sempra Energy plans’ corporate staff costs. Total share-based compensation expense for all of Sempra Energy’s share-based awards was comprised as follows:



SHARE-BASED COMPENSATION EXPENSE
(Dollars in millions)
	Years ended December 31,
	2018			2017			2016
Sempra Energy Consolidated:
Share-based compensation expense, before income taxes	$	76		$	78		$	46
Income tax benefit	(21		)	(31		)	(18		)
	$	55		$	47		$	28

Capitalized share-based compensation cost	$	10		$	9		$	7
Excess income tax deficiency (benefit)	$	15		$	—		$	(34	)
SDG&E:
Share-based compensation expense, before income taxes	$	12		$	13		$	7
Income tax benefit	(3		)	(5		)	(3		)
	$	9		$	8		$	4

Capitalized share-based compensation cost	$	6		$	5		$	4
Excess income tax deficiency (benefit)	$	3		$	—		$	(7	)
SoCalGas:
Share-based compensation expense, before income taxes	$	16		$	17		$	8
Income tax benefit	(5		)	(7		)	(3		)
	$	11		$	10		$	5

Capitalized share-based compensation cost	$	4		$	4		$	3
Excess income tax deficiency (benefit)	$	2		$	—		$	(4	)

SEMPRA ENERGY NON-QUALIFIED STOCK OPTIONS

We use a Black-Scholes option-pricing model to estimate the fair value of each non-qualified stock option grant. The use of a valuation model requires us to make certain assumptions about selected model inputs. Expected volatility is calculated based on the historical volatility of Sempra Energy’s common stock price. We base the average expected life for options on the contractual term of the option and expected employee exercise and post-termination behavior. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term equal to the expected life assumed at the date of the grant.

The following table shows a summary of non-qualified stock options at December 31, 2018 and activity for the year then ended:



NON-QUALIFIED STOCK OPTIONS

	Common shares under option		Weighted- average exercise price		Weighted- average remaining contractual term (in years)	Aggregate intrinsic value (in millions)
Outstanding at January 1, 2018	195,801		$	50.30
Exercised	(138,861	)	$	48.53
Outstanding at December 31, 2018	56,940		$	54.63	0.9	$	3

Vested at December 31, 2018	56,940		$	54.63	0.9	$	3
Exercisable at December 31, 2018	56,940		$	54.63	0.9	$	3

The aggregate intrinsic value at December 31, 2018 is the total of the difference between Sempra Energy’s closing common stock price and the exercise price for all in-the-money options. The aggregate intrinsic value for non-qualified stock options exercised in the last three years was:


▪	$9 million in 2018;


▪	$9 million in 2017; and


▪	$8 million in 2016.

We have not granted any stock options since 2010, though in January 2019, we granted non-qualified stock options to several executive officers of Sempra Energy. All outstanding stock options at December 31, 2018 are fully vested and compensation cost on such stock options was fully recognized by December 31, 2014.

We received cash of $7 million from stock option exercises during 2018.

SEMPRA ENERGY RESTRICTED STOCK AWARDS AND UNITS

We use a Monte-Carlo simulation model to estimate the fair value of our RSAs and for our RSUs that vest based on Sempra Energy’s total return to shareholders. Our determination of fair value is affected by the historical volatility of the common stock price for Sempra Energy and its peer group companies. The valuation also is affected by the risk-free rates of return, and a number of other variables. Below are key assumptions for Sempra Energy awards granted in the last three years:



KEY ASSUMPTIONS FOR AWARDS GRANTED

	Years ended December 31,
	2018		2017		2016
Risk-free rate of return	2.0	%	1.5	%	1.3	%
Stock price volatility	17		17		16

Restricted Stock Awards

We have not granted any RSAs since 2013. All outstanding RSAs were fully vested and all compensation cost related to RSAs had been recognized by December 31, 2016. The total fair value of RSA shares vested in 2016 was negligible.

Restricted Stock Units

We provide below a summary of Sempra Energy’s RSUs as of December 31, 2018 and the activity during the year.



RESTRICTED STOCK UNITS

	Performance-based restricted stock units				Service-based restricted stock units
	Units		Weighted- average grant-date fair value		Units		Weighted- average grant-date fair value
Nonvested at January 1, 2018	1,701,617		$	105.84	285,895		$	98.81
Granted	358,363		$	105.03	288,474		$	107.60
Vested	(157,745	)	$	99.42	(163,609	)	$	100.60
Forfeited	(660,066	)	$	106.45	(8,399	)	$	103.32
Nonvested at December 31, 2018⁽¹⁾	1,242,169		$	106.11	402,361		$	105.01
Expected to vest at December 31, 2018	1,211,529		$	105.47	396,358		$	104.26


⁽¹⁾	Each RSU represents the right to receive one share of our common stock if applicable performance conditions are satisfied. For all performance-based RSUs, except for those issued in connection with the creation of Cameron LNG JV, up to an additional 100 percent of the shares represented by the RSUs may be issued if Sempra Energy exceeds target performance conditions.

In 2018, 2017 and 2016, the total fair value of RSU shares vested during the year was $32 million, $45 million and $46 million, respectively.

The $24 million of total compensation cost related to nonvested RSUs not yet recognized as of December 31, 2018 is expected to be recognized over a weighted-average period of 1.8 years. The weighted-average per-share fair values for performance-based RSUs granted were $110.54 and $100.37 in 2017 and 2016, respectively. The weighted-average per-share fair values for service-based RSUs granted were $101.88 and $93.59 in 2017 and 2016, respectively.

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - VARIABLE INTEREST ENTITIES (Details)
$ in Millions

3 Months Ended

12 Months Ended

Mar. 09, 2018

Dec. 31, 2018

USD ($)

Sep. 30, 2018

USD ($)

Jun. 30, 2018

USD ($)

Mar. 31, 2018

USD ($)

Dec. 31, 2017

USD ($)

Sep. 30, 2017

USD ($)

Jun. 30, 2017

USD ($)

Mar. 31, 2017

USD ($)

Dec. 31, 2018

USD ($)

Dec. 31, 2017

USD ($)

Dec. 31, 2016

USD ($)

Variable Interest Entity [Line Items]

Operation and maintenance

$ 3,309

$ 3,096

^[1]

$ 2,976

^[1]

Depreciation and amortization

1,549

1,490

^[1]

1,312

^[1]

ASSETS

Cash and cash equivalents

$ 190

$ 288

190

288

Restricted cash

Inventories

296

307

296

307

Other

257

202

257

202

Total current assets

3,645

3,341

3,645

3,341

Sundry

974

792

974

792

Restricted cash

Property, plant and equipment, net

36,796

36,503

36,796

36,503

Total assets

60,638

50,454

60,638

50,454

47,786

Liabilities [Abstract]

Current portion of long-term debt

1,673

1,427

1,673

1,427

Other

970

816

970

816

Total current liabilities

7,523

6,635

7,523

6,635

Asset retirement obligations

2,787

2,732

2,787

2,732

Deferred income taxes

2,571

2,767

2,571

2,767

Long-term debt

21,611

16,445

21,611

16,445

Equity [Abstract]

Total liabilities and equity

60,638

50,454

60,638

50,454

Net assets less other noncontrolling interests

17,138

12,670

17,138

12,670

Operating Expenses [Abstract]

Energy-related businesses

1,641

1,431

^[1]

922

^[1]

Income before income taxes

1,046

1,551

^[1]

1,824

^[1]

Other income, net

233

^[1]

138

^[1]

Interest expense

(925)

(659)

^[1]

(553)

^[1]

Income tax expense

(96)

(1,276)

^[1]

(389)

^[1]

Net income

964

$ 334

$ (530)

$ 358

(451)

$ 102

$ 248

$ 452

1,126

351

^[1]

1,519

^[1]

(Earnings) losses attributable to noncontrolling interest

(76)

(94)

^[1]

(148)

^[1]

Earnings attributable to common shares

864

274

(561)

347

(501)

259

441

Equity method investment

9,652

Otay Mesa VIE [Member]

Liabilities [Abstract]

Current portion of long-term debt

San Diego Gas and Electric Company [Member]

Variable Interest Entity [Line Items]

Operation and maintenance

1,058

1,024

^[1]

1,062

^[1]

Depreciation and amortization

688

670

^[1]

646

^[1]

Investments [Abstract]

Gross long-term debt

4,776

4,573

4,776

4,573

ASSETS

Cash and cash equivalents

Restricted cash

Inventories

102

105

102

105

Other

Total current assets

894

1,100

894

1,100

Sundry

420

328

420

328

Restricted cash

Property, plant and equipment, net

16,310

14,838

16,310

14,838

Total assets

19,225

17,844

19,225

17,844

Liabilities [Abstract]

Current portion of long-term debt

220

Other

141

147

141

147

Total current liabilities

1,428

1,622

1,428

1,622

Asset retirement obligations

778

762

778

762

Deferred income taxes

1,616

1,530

1,616

1,530

Long-term debt

6,138

5,335

6,138

5,335

Equity [Abstract]

Total liabilities and equity

19,225

17,844

19,225

17,844

Net assets less other noncontrolling interests

6,015

5,598

6,015

5,598

Operating Expenses [Abstract]

Income before income taxes

849

576

^[1]

845

^[1]

Operating income

247

300

215

248

256

(58)

237

274

1,010

709

^[1]

976

^[1]

Other income, net

^[1]

Interest expense

(221)

(203)

^[1]

(195)

^[1]

Income tax expense

(173)

(155)

^[1]

(280)

^[1]

Net income

145

216

146

169

130

(19)

153

157

676

421

^[1]

565

^[1]

(Earnings) losses attributable to noncontrolling interest

$ (11)

$ 0

$ 1

$ (9)

$ (4)

$ (2)

(7)

(14)

^[1]

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

Variable Interest Entity [Line Items]

Utility Operating Revenue, Fuel

(75)

(79)

Operation and maintenance

Depreciation and amortization

$ 30

Investments [Abstract]

Generating capacity (in mw) | MW

605

Put option

280

$ 280

Equity of Variable interest entity

100

ASSETS

Cash and cash equivalents

Property, plant and equipment, net

295

321

295

321

Total assets

330

347

330

347

Liabilities [Abstract]

Current portion of long-term debt

Fixed-price contracts and other derivatives

Other

Total current liabilities

Long-term debt

190

284

190

284

Fixed-price contracts and other derivatives

Deferred credits and other

Equity [Abstract]

Other noncontrolling interests

100

Total liabilities and equity

330

347

330

347

Operating Expenses [Abstract]

Total operating expenses

(28)

(34)

(15)

Operating income

Other income, net

Interest expense

(23)

(22)

(20)

Net income

(5)

(Earnings) losses attributable to noncontrolling interest

(7)

(14)

Earnings attributable to common shares

Sempra Renewables [Member]

ASSETS

Inventories

Sempra Renewables [Member] | Noncontrolling Tax Equity Investors [Member]

Variable Interest Entity [Line Items]

Operation and maintenance

Depreciation and amortization

ASSETS

Cash and cash equivalents

Accounts receivable – trade, net

Property, plant and equipment, net

286

1,412

286

1,412

Total assets

296

1,444

296

1,444

Liabilities [Abstract]

Accounts payable

Other

Total current liabilities

Asset retirement obligations

Deferred income taxes

Deferred credits and other

Total liabilities

Equity [Abstract]

Other noncontrolling interests

158

631

158

631

Net assets less other noncontrolling interests

122

719

122

719

Operating Expenses [Abstract]

Energy-related businesses

Income before income taxes

Income tax expense

(18)

(4)

Net income

(Earnings) losses attributable to noncontrolling interest

Earnings attributable to common shares

$ 5

Disposal of PP&E,net and other assets and liabilities

1,100

Sempra LNG & Midstream [Member]

ASSETS

Inventories

Sempra LNG & Midstream [Member] | Cameron LNG Holdings [Member]

Operating Expenses [Abstract]

Equity method investment

1,271

997

1,271

997

Otay Mesa Energy Center Loan Payable 2019 through 2024 [Member] | San Diego Gas and Electric Company [Member] | Otay Mesa VIE [Member]

Investments [Abstract]

Gross long-term debt

220

$ 0

220

$ 0

Oncor Holdings Electric Delivery Company LLC [Member]

Operating Expenses [Abstract]

Acquired percentage interest

80.25%

Oncor Holdings Electric Delivery Company LLC [Member] | Sempra Texas Utility [Member]

Operating Expenses [Abstract]

Commitment to invest

1,025

Equity method investment

$ 9,652

9,652

Management agreement termination fee

$ 40

Oncor Electric Delivery Company LLC [Member]

Operating Expenses [Abstract]

Acquired percentage interest

80.25%

Sempra Texas Holdings Corp [Member] | Oncor Holdings Electric Delivery Company LLC [Member] | Sempra Texas Intermediate Holding Company LLC [Member]

Operating Expenses [Abstract]

Ownership percentage in consolidated entity

100.00%

Sempra Texas Holdings Corp [Member] | Oncor Electric Delivery Company LLC [Member]

Operating Expenses [Abstract]

Acquired percentage interest

80.03%

[1]	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1.

SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT

12 Months Ended

Dec. 31, 2018

Condensed Financial Information Disclosure [Abstract]

Schedule I - Condensed Financial Information of Parent



SEMPRA ENERGY
CONDENSED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share amounts)
	Years ended December 31,
	2018			2017⁽¹⁾			2016⁽¹⁾
Interest income	$	14		$	—		$	—
Interest expense	(495		)	(293		)	(277		)
Operating expenses	(82		)	(80		)	(76		)
Other (expense) income, net	(16		)	100			(7		)
Income tax benefit	154			33			181
Loss before equity in earnings of subsidiaries	(425		)	(240		)	(179		)
Equity in earnings of subsidiaries, net of income taxes	1,474			496			1,549
Net income	1,049			256			1,370
Mandatory convertible preferred stock dividends	(125		)	—			—
Earnings	$	924		$	256		$	1,370
Basic earnings per common share	$	3.45		$	1.02		$	5.48
Weighted-average shares outstanding, basic (thousands)	268,072			251,545			250,217
Diluted earnings per common share	$	3.42		$	1.01		$	5.46
Weighted-average shares outstanding, diluted (thousands)	269,852			252,300			251,155


⁽¹⁾	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2.

See Notes to Condensed Financial Information of Parent.



SEMPRA ENERGY
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
	Years ended December 31, 2018, 2017 and 2016
	Pretax amount			Income tax benefit (expense)			Net-of-tax amount
2018:
Net income	$	895		$	154		$	1,049
Other comprehensive income (loss):
Foreign currency translation adjustments	(144		)	—			(144		)
Financial instruments	64			(21		)	43
Pension and other postretirement benefits	(38		)	4			(34		)
Total other comprehensive loss	(118		)	(17		)	(135		)
Comprehensive income	$	777		$	137		$	914
2017:
Net income	$	223		$	33		$	256
Other comprehensive income (loss):
Foreign currency translation adjustments	107			—			107
Financial instruments	2			1			3
Pension and other postretirement benefits	20			(8		)	12
Total other comprehensive income	129			(7		)	122
Comprehensive income	$	352		$	26		$	378
2016:
Net income	$	1,189		$	181		$	1,370
Other comprehensive income (loss):
Foreign currency translation adjustments	42			—			42
Financial instruments	(6		)	11			5
Pension and other postretirement benefits	(13		)	4			(9		)
Total other comprehensive income	23			15			38
Comprehensive income	$	1,212		$	196		$	1,408

See Notes to Condensed Financial Information of Parent.



SEMPRA ENERGY
CONDENSED BALANCE SHEETS
(Dollars in millions)
	December 31, 2018		December 31, 2017
Assets:
Cash and cash equivalents	$	14	$	104
Due from affiliates	93		83
Income taxes receivable	397		272
Other current assets	9		6
Total current assets	513		465

Investments in subsidiaries	28,778		17,924
Due from affiliates	3		2
Deferred income taxes	1,554		1,802
Other assets	572		656
Total assets	$	31,420	$	20,849

Liabilities and shareholders’ equity:
Current portion of long-term debt	$	1,498	$	500
Due to affiliates	287		280
Other current liabilities	527		396
Total current liabilities	2,312		1,176

Long-term debt	9,647		6,198
Due to affiliates	1,812		300
Other long-term liabilities	511		505

Commitments and contingencies (Note 4)

Shareholders’ equity	17,138		12,670
Total liabilities and shareholders’ equity	$	31,420	$	20,849

See Notes to Condensed Financial Information of Parent.



SEMPRA ENERGY
CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in millions)
	Years ended December 31,
	2018			2017			2016

Net cash provided by (used in) operating activities	$	213		$	89		$	(3	)

Expenditures for property, plant and equipment	(11		)	(11		)	(5		)
Expenditures for acquisition	(329		)	—			—
Capital contributions to investees	(9,457		)	—			—
(Increase) decrease in loans to affiliates, net	(1		)	—			457
Expenditures for Merger-related costs	—			(12		)	—
Net cash (used in) provided by investing activities	(9,798		)	(23		)	452

Common stock dividends paid	(877		)	(755		)	(686		)
Preferred dividends paid	(89		)	—			—
Issuances of mandatory convertible preferred stock, net of $42 in offering costs in 2018	2,258			—			—
Issuances of common stock, net of $41 in offering costs in 2018	2,272			47			51
Repurchases of common stock	(21		)	(15		)	(56		)
Issuances of long-term debt	4,969			1,595			499
Payments on long-term debt	(500		)	(600		)	(750		)
Increase (decrease) in loans from affiliates, net	1,520			(239		)	504
Debt issuance costs	(37		)	(7		)	(3		)
Net cash provided by (used in) financing activities	9,495			26			(441		)

(Decrease) increase in cash and cash equivalents	(90		)	92			8
Cash and cash equivalents, January 1	104			12			4
Cash and cash equivalents, December 31	$	14		$	104		$	12

SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Accrued Merger-related transaction costs	$	—		$	31		$	—
Preferred dividends declared but not paid	36			—			—
Common dividends issued in stock	54			53			53
Common dividends declared but not paid	245			207			189

See Notes to Condensed Financial Information of Parent.BASIS OF PRESENTATION

The condensed financial information of Sempra Energy has been prepared in accordance with SEC Regulation S-X Rule 5-04 and Rule 12-04. We apply the same accounting policies as in the financial statements of Sempra Energy Consolidated, except that Sempra Energy accounts for the earnings of its subsidiaries under the equity method in this unconsolidated financial information.

Other Income, Net, on the Condensed Statements of Operations includes:


▪	$(6) million, $56 million and $23 million of (losses) gains on dedicated assets in support of our executive retirement and deferred compensation plans in 2018, 2017 and 2016, respectively; and


▪	$3 million, $50 million and $(28) million net gains (losses) primarily from the settlement of foreign currency derivatives to hedge Sempra Mexico parent’s exposure to movements in the Mexican peso from its controlling interest in IEnova in 2018, 2017 and 2016, respectively.

Additional information on Sempra Energy’s foreign currency derivatives is provided in Note 11 of the Notes to Consolidated Financial Statements.NEW ACCOUNTING STANDARDS

We describe below and in Note 2 of the Notes to Consolidated Financial Statements recent pronouncements that have had a significant effect on Sempra Energy’s financial condition, results of operations, cash flows or disclosures. Additional information on ASU 2018-05 and ASU 2018-14, which may also have a significant effect on Sempra Energy’s financial condition, results of operation, cash flows or disclosures, is provided in Note 2 of the Notes to Consolidated Financial Statements.

ASU 2016-02, “Leases,” ASU 2018-10, “Codification Improvements to Topic 842, Leases” and ASU 2018-11, “Leases (Topic 842): Targeted Improvements” (collectively referred to as the “lease standard”): We will adopt the lease standard on January 1, 2019 using the optional transition method to apply the new guidance prospectively as of January 1, 2019, rather than as of the earliest period presented. The adoption of the lease standard will have a material impact on our balance sheet at January 1, 2019 due to the initial recognition of ROU assets and lease liabilities for operating leases.

The following table shows the expected increase (decrease) from adoption of the lease standard on our balance sheet at January 1, 2019.



EXPECTED IMPACT FROM ADOPTION OF THE LEASE STANDARD
(Dollars in millions)
Right-of-use assets – operating leases	$	191
Deferred income taxes	(3		)
Property, plant and equipment, net⁽¹⁾	(147		)
Other current liabilities	3
Long-term debt	(138		)
Other long-term liabilities	159
Retained earnings⁽²⁾	17


⁽¹⁾	Included in Other Assets.


⁽²⁾	Included in Shareholders’ Equity.

As a result of the adoption of the lease standard, we will derecognize our corporate headquarters building lease in accordance with the transition provisions for build-to-suit arrangements. On a prospective basis, we will account for the corporate headquarters building lease as an operating lease. The expected impact is included in the above table.

ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”: We adopted the standard on January 1, 2018 and elected the practical expedient available under the transition guidance. Upon adoption of ASU 2017-07, our Condensed Statements of Operations were impacted as follows:



IMPACT FROM ADOPTION OF ASU 2017-07
(Dollars in millions)
	Years ended December 31,
	2017									2016
	As previously reported			Effect of adoption			As adjusted			As previously reported			Effect of adoption			As adjusted
Sempra Energy:
Operation and maintenance	$	(87	)	$	7		$	(80	)	$	(81	)	$	5		$	(76	)
Other income (expense), net	107			(7		)	100			(2		)	(5		)	(7		)

ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”: We will adopt ASU 2018-02 on January 1, 2019 and will reclassify the income tax effects of the TCJA from AOCI to retained earnings. We expect the impact from adoption of ASU 2018-02 on January 1, 2019 to be an increase of $14 million to beginning Retained Earnings and Accumulated Other Comprehensive Loss.LONG-TERM DEBT

The following table shows the detail and maturities of long-term debt outstanding:



LONG-TERM DEBT
(Dollars in millions)
	December 31,
	2018			2017

6.15% Notes June 15, 2018	$	—		$	500
9.8% Notes February 15, 2019	500			500
Notes at variable rates (2.69% at December 31, 2018) July 15, 2019	500			—
1.625% Notes October 7, 2019	500			500
2.4% Notes February 1, 2020	500			—
2.4% Notes March 15, 2020	500			500
2.85% Notes November 15, 2020	400			400
Notes at variable rates (2.94% at December 31, 2018) January 15, 2021⁽¹⁾	700			—
Notes at variable rates (3.24% at December 31, 2018) March 15, 2021	850			850
2.875% Notes October 1, 2022	500			500
2.9% Notes February 1, 2023	500			—
4.05% Notes December 1, 2023	500			500
3.55% Notes June 15, 2024	500			500
3.75% Notes November 15, 2025	350			350
3.25% Notes June 15, 2027	750			750
3.4% Notes February 1, 2028	1,000			—
3.8% Notes February 1, 2038	1,000			—
6% Notes October 15, 2039	750			750
4% Notes February 1, 2048	800			—
Fair value adjustments for interest rate swaps, net	—			(1		)
Build-to-suit lease	138			138
	11,238			6,737
Current portion of long-term debt	(1,498		)	(500		)
Unamortized discount on long-term debt	(38		)	(13		)
Unamortized debt issuance costs	(55		)	(26		)
Total long-term debt	$	9,647		$	6,198


⁽¹⁾	Callable long-term debt not subject to make-whole provisions.

Excluding the build-to-suit lease and market value adjustments for interest rate swaps, maturities of long-term debt are $1.5 billion in 2019, $1.4 billion in 2020, $1.5 billion in 2021, $500 million in 2022, $1 billion in 2023 and $5.2 billion thereafter.

Additional information on Sempra Energy’s long-term debt is provided in Note 7 of the Notes to Consolidated Financial Statements.COMMITMENTS AND CONTINGENCIESFor contingencies and guarantees related to Sempra Energy, refer to Notes 5, 6 and 16 of the Notes to Consolidated Financial Statements.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Common stock dividends declared (USD per share)	$ 3.58	$ 3.29	$ 3.02
Preferred Class A [Member]
Preferred stock, dividends declared per share (USD per share)	6.10
Preferred Class B [Member]
Preferred stock, dividends declared per share (USD per share)	3.41
Southern California Gas Company [Member]
Common stock dividends declared (USD per share)	1.50	1.50	1.50
Preferred stock, dividends declared per share (USD per share)	0.55
San Diego Gas and Electric Company [Member]
Common stock dividends declared (USD per share)	$ 2.14	$ 3.86	$ 1.50

INCOME TAXES - CHANGES IN UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Possible change in unrecognized tax benefits in next 12 months	$ (41)	$ (8)	$ (38)
San Diego Gas and Electric Company [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Possible change in unrecognized tax benefits in next 12 months	(6)	(6)	(11)
Expiration of statutes of limitations on tax assessments [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Possible change in unrecognized tax benefits in next 12 months	(1)	0	(2)
Expiration of statutes of limitations on tax assessments [Member] \| San Diego Gas and Electric Company [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Possible change in unrecognized tax benefits in next 12 months	0	0	(1)
Potential resolution of audit issues with various U.S. federal, state, and local non-U.S. taxing authorities [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Possible change in unrecognized tax benefits in next 12 months	(40)	(8)	(36)
Potential resolution of audit issues with various U.S. federal, state, and local non-U.S. taxing authorities [Member] \| San Diego Gas and Electric Company [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Possible change in unrecognized tax benefits in next 12 months	(6)	(6)	(10)
Potential resolution of audit issues with various U.S. federal, state, and local non-U.S. taxing authorities [Member] \| Southern California Gas Company [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Possible change in unrecognized tax benefits in next 12 months	$ (2)	$ (2)	$ (25)

NEW ACCOUNTING STANDARDS

12 Months Ended

Dec. 31, 2018

Accounting Changes and Error Corrections [Abstract]

NEW ACCOUNTING STANDARDS

We describe below recent accounting pronouncements that have had or may have a significant effect on our financial condition, results of operations, cash flows or disclosures.

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 adds ASC 606 to provide 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. The ASUs are codified in ASC 606.

We adopted ASC 606 on January 1, 2018, applying the modified retrospective transition method to all contracts as of January 1, 2018 and elected to use certain practical expedients available under the transition guidance. The impact from adoption was not material to our financial statements, and the timing of our revenue recognition has remained materially consistent before and after the adoption of ASC 606. The new revenue standard provides specific guidance for combining contracts, which resulted in a prospective reclassification between cost of sales and revenues within our Sempra LNG & Midstream segment. This reclassification had no impact on Sempra Energy’s consolidated revenues or cost of sales. Our additional disclosures about the nature, amount, timing and uncertainty of revenues arising from contracts with customers are included in Note 3.

ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” and ASU 2018-03, “Technical Corrections and Improvements to Financial Instruments – Overall”: In addition to the presentation and disclosure requirements for financial instruments, ASU 2016-01 requires entities to measure equity investments, other than those 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 that do not qualify for the practical expedient to estimate fair value using NAV per share, 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. ASU 2018-03 clarifies that the prospective transition approach for equity investments without readily determinable fair values is meant only for instances in which the measurement alternative is elected. 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, except for equity investments without readily determinable fair values, for which the guidance will be applied prospectively.

We adopted ASU 2016-01 and ASU 2018-03 on January 1, 2018. Sempra Energy recognized a cumulative-effect adjustment to decrease Retained Earnings and Other Investments as of January 1, 2018 by $1 million.

ASU 2016-02, “Leases,” ASU 2018-01, “Land Easement Practical Expedient for Transition to Topic 842,” ASU 2018-10, “Codification Improvements to Topic 842, Leases,” ASU 2018-11, “Leases (Topic 842): Targeted Improvements” and ASU 2018-20, “Narrow-Scope Improvements for Lessors” (collectively referred to as the “lease standard”): ASU 2016-02 requires entities to recognize substantially all of their leases on the balance sheet as ROU assets and lease liabilities. Entities may elect to exclude from the balance sheet those leases with a term of 12 months or less. For lessees, a lease is classified as finance or operating, and initially the asset and liability for each lease type is generally measured at the present value of the fixed lease payments. ASU 2016-02 also requires new qualitative and quantitative disclosures for both lessees and lessors. ASU 2018-10 makes technical corrections and clarifications to the accounting guidance in ASC 842.

For lessors, accounting for leases is largely unchanged from previous provisions of U.S. GAAP, other than certain changes to the lease identification criteria and aligning the principles of the lessor model with those introduced in ASC 606. ASU 2018-20 addresses the following issues that lessors encounter when applying ASU 2016-02: (a) sales taxes and other similar taxes collected from lessees, (b) certain lessor costs paid directly by the lessee and (c) recognition of variable payments for contracts with lease and nonlease components.

For public entities, the lease standard is effective for fiscal years beginning after December 15, 2018, including interim periods therein, with early adoption permitted. ASU 2016-02 requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. ASU 2018-11 provides entities an optional transition method to apply the new guidance as of the adoption date, rather than as of the earliest period presented. In transition, entities may elect certain practical expedients when applying ASU 2016-02. These include a package of practical expedients that must be applied in its entirety to all leases that had commenced before the effective date and would allow an entity to not reassess (a) the existence of a lease, (b) lease classification or (c) determination of initial direct costs, which effectively allows entities to carryforward accounting conclusions under previous U.S. GAAP. ASU 2016-02 also includes a practical expedient to use hindsight in making judgments when determining the lease term and any long-lived asset impairment. ASU 2018-01 allows entities to elect a practical expedient that would exclude application of ASU 2016-02 to land easements that existed prior to its adoption, if they were not accounted for as leases under previous U.S. GAAP. In addition, ASU 2016-02 and ASU 2018-11 provide practical expedients to the lessee and lessor, respectively, for separating lease and non-lease components. These ASUs are codified in ASC 842.

We will adopt the lease standard on January 1, 2019 using the optional transition method to apply the new guidance prospectively as of January 1, 2019, rather than as of the earliest period presented. We plan to elect the package of practical expedients and the land easement practical expedient described above. We do not plan to elect the practical expedient to use hindsight.

The adoption of the lease standards will not change our previously reported financial statements. However, on a prospective basis, a significant portion of finance lease costs for PPAs that have historically been classified in Cost of Electric Fuel and Purchased Power will be classified in Depreciation and Amortization Expense and Interest Expense on Sempra Energy’s and SDG&E’s statements of operations. In 2018, we recorded $117 million in purchased-power costs from capital leases in Cost of Electric Fuel

and Purchased Power at SDG&E and Sempra Energy. Further, the adoption of the lease standard will have a material impact on our balance sheets at January 1, 2019 due to the initial recognition of ROU assets and lease liabilities for operating leases. Our finance leases were already included on our balance sheets prior to adoption of the lease standard, consistent with previous U.S. GAAP for capital leases. We will include additional disclosures about our leases in our Notes to Consolidated Financial Statements beginning in the first quarter of 2019.

The following table shows the expected (decrease) increase on our balance sheets at January 1, 2019 from adoption of the lease standard.



EXPECTED IMPACT FROM ADOPTION OF THE LEASE STANDARD
(Dollars in millions)
	Sempra Energy Consolidated			SDG&E		SoCalGas
Other current assets	$	(68	)	$	—	$	—
Property, plant and equipment, net	(147		)	—		—
Right-of-use assets – operating leases	623			130		116
Deferred income taxes	(3		)	—		—
Other current liabilities	81			20		23
Long-term debt	(138		)	—		—
Deferred credits and other	445			110		93
Retained earnings	17			—		—

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, including interim periods therein, with early adoption permitted for fiscal years beginning after December 15, 2018. The amendments are to be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings at the beginning of the first reporting period in the year of adoption. We are currently evaluating the effect of the standard on our ongoing financial reporting and plan to adopt the standard on January 1, 2020.

ASU 2017-04, “Simplifying the Test for Goodwill Impairment”: ASU 2017-04 removes the second step of the goodwill impairment test, which requires a hypothetical purchase price allocation. An entity will be required to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the carrying amount of goodwill. For public entities, ASU 2017-04 is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. The amendments are to be applied on a prospective basis. We plan to adopt the standard on January 1, 2020.

ASU 2017-05, “Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets”: ASU 2017-05 clarifies the scope of accounting for the derecognition or partial sale of nonfinancial assets to exclude all businesses and nonprofit activities. ASU 2017-05 also provides a definition for in-substance nonfinancial assets and additional guidance on partial sales of nonfinancial assets. We adopted the standard in conjunction with our adoption of ASC 606 on January 1, 2018 using the modified retrospective transition method and it did not materially affect our financial condition, results of operations or cash flows.

ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”: ASU 2017-07 requires the service cost component of net periodic benefit costs to be presented in the same income statement line item as other employee compensation costs arising from services rendered during the period and the other components of net periodic benefit costs to be presented separately outside of operating income. The guidance also allows only the service cost component to be eligible for capitalization. Amendments are to be applied retrospectively for presentation of costs and prospectively for capitalization of service costs. The guidance allows a practical expedient that permits use of previously disclosed service costs

and other costs from the pension and other postretirement benefit plan disclosure in the comparative periods as appropriate estimates when retrospectively changing the presentation of these costs in the statements of operations. We adopted the standard on January 1, 2018 and elected the practical expedient available under the transition guidance.

Upon adoption of ASU 2017-07, our Consolidated Statements of Operations were impacted as follows:



IMPACT FROM ADOPTION OF ASU 2017-07
(Dollars in millions)
	Years ended December 31,
	2017							2016
	As previously reported		Effect of adoption			As adjusted		As previously reported		Effect of adoption			As adjusted
Sempra Energy:
Operation and maintenance	$	3,117	$	(21	)	$	3,096	$	2,970	$	6		$	2,976
Other income, net	254		(21		)	233		132		6			138
SDG&E:
Operation and maintenance	$	1,020	$	4		$	1,024	$	1,048	$	14		$	1,062
Total operating expenses	3,763		4			3,767		3,263		14			3,277
Operating income	713		(4		)	709		990		(14		)	976
Other income, net	66		4			70		50		14			64
SoCalGas:
Operation and maintenance	$	1,479	$	(5	)	$	1,474	$	1,385	$	6		$	1,391
Total operating expenses	3,163		(5		)	3,158		2,914		6			2,920
Operating income	622		5			627		557		(6		)	551
Other income, net	36		(5		)	31		32		6			38

ASU 2017-12, “Targeted Improvements to Accounting for Hedging Activities”: ASU 2017-12 changes the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge accounting results. More specifically, the guidance expands the exposures that can be hedged to align with an entity’s risk management strategies, alleviates documentation requirements, eliminates the concept of recognizing periodic hedge ineffectiveness for cash flow and net investment hedges and requires entities to present the entire change in the fair value of a hedging instrument in the same income statement line item as the earnings effect of the hedged item. Transition elections are available for all hedges that exist at the date of adoption. We early adopted ASU 2017-12 on January 1, 2018 by applying the modified retrospective approach to the accounting for existing hedging relationships. Upon adoption of ASU 2017-12, Sempra Energy recognized a cumulative-effect adjustment to increase Retained Earnings and Accumulated Other Comprehensive Loss as of January 1, 2018 by $3 million.

ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”: ASU 2018-02 contains amendments that allow a reclassification from AOCI to retained earnings for stranded tax effects resulting from the TCJA. Under ASU 2018-02, an entity will be required to provide certain disclosures regarding stranded tax effects, including its accounting policy related to releasing the income tax effects from AOCI. The amendments in this update can be applied either as of the beginning of the period of adoption or retrospectively as of the date of enactment of the TCJA and to each period in which the effect of the TCJA is recognized. For public entities, ASU 2018-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods therein, with early adoption permitted. We will adopt ASU 2018-02 on January 1, 2019 and will reclassify the income tax effects of the TCJA from AOCI to retained earnings.

We expect the impact from adoption of ASU 2018-02 on January 1, 2019 to be as follows:


▪	Sempra Energy: increase of $40 million to beginning Retained Earnings, $2 million to noncurrent Regulatory Liabilities and $42 million to Accumulated Other Comprehensive Loss;


▪	SDG&E: increase of $2 million to beginning Retained Earnings and Accumulated Other Comprehensive Loss; and


▪	SoCalGas: increase of $2 million to beginning Retained Earnings, $2 million to noncurrent Regulatory Liabilities and $4 million to Accumulated Other Comprehensive Loss.

ASU 2018-05, “Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118”: As a result of the TCJA, the SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118), which provides guidance on accounting for the TCJA’s impact. Under SAB 118, an entity may apply an approach similar to the measurement period in a business combination. That is, an entity would record those impacts for which the accounting is complete. For matters that are not certain, the entity would either

(a) recognize provisional amounts to the extent that they are reasonably estimable and adjust them over time as more information becomes available, or (b) for any specific income tax effects of the TCJA for which a reasonable estimate cannot be determined, continue to apply ASC 740, Income Taxes, on the basis of the provisions of the tax laws that were in effect immediately before the TCJA was signed into law; the entity would not adjust current or deferred income taxes for those tax effects of the TCJA until a reasonable estimate can be determined. ASU 2018-05 amends ASC 740 by incorporating SAB 118 and was effective upon issuance. We applied SAB 118 and ASU 2018-05 in 2018. The income tax effects of the TCJA that we recorded in 2017 were provisional. We adjusted our provisional estimates and completed our accounting for the income tax effects of the TCJA in 2018, as we discuss in Note 8.

ASU 2018-13, “Changes to the Disclosure Requirements for Fair Value Measurement” and ASU 2018-14, “Changes to the Disclosure Requirements for Defined Benefit Plans”: ASU 2018-13 and ASU 2018-14 are intended to improve the effectiveness of disclosures. ASU 2018-13 adds, removes and modifies certain disclosure requirements related to fair value measurements. ASU 2018-14 adds, removes and clarifies certain disclosure requirements related to defined benefit pension and other postretirement plans. For public entities, ASU 2018-13 is effective for annual reporting periods beginning after December 15, 2019, including interim periods therein, with early adoption permitted. For public entities, ASU 2018-14 is effective for annual reporting periods ending after December 15, 2020, with early adoption permitted. We adopted both ASU 2018-13 and ASU 2018-14 on December 31, 2018 and have updated our financial statement disclosures accordingly.

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - OTHER INTANGIBLE ASSETS (Details) - USD ($)	1 Months Ended		12 Months Ended
	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross (Excluding Goodwill)	$ 298,000,000		$ 298,000,000	$ 698,000,000
Accumulated amortization	(26,000,000)		(26,000,000)	(102,000,000)
Other intangible assets	272,000,000		272,000,000	596,000,000
Intangible assets amortization expense			16,000,000	18,000,000	$ 11,000,000
Future intangible asset amortization expense per year			12,000,000
Development rights [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, Gross	0		0	322,000,000
Accumulated amortization	0		$ 0	(60,000,000)
Amortization period			50 years
Renewable energy and consumption permit [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, Gross	154,000,000		$ 154,000,000	154,000,000
Accumulated amortization	(16,000,000)		$ (16,000,000)	(8,000,000)
Amortization period			19 years
Storage rights [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, Gross	0		$ 0	138,000,000
Accumulated amortization	0		$ 0	(28,000,000)
Amortization period			46 years
O&M agreement [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, Gross	66,000,000		$ 66,000,000	66,000,000
Accumulated amortization	(3,000,000)		$ (3,000,000)	0
Amortization period			23 years
Other [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, Gross	28,000,000		$ 28,000,000	18,000,000
Accumulated amortization	(7,000,000)		$ (7,000,000)	(6,000,000)
Other [Member] \| Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization period			10 years
Sempra LNG & Midstream [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of Intangible Assets, Finite-lived			$ 369,000,000
Disposal Group Held-for-sale [Member]
Finite-Lived Intangible Assets [Line Items]
Asset impairment charges		$ 1,500,000,000
Disposal Group Held-for-sale [Member] \| Sempra LNG & Midstream [Member]
Finite-Lived Intangible Assets [Line Items]
Asset impairment charges	(183,000,000)	$ 1,300,000,000	1,100,000,000
Concession Permits [Member]
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived Intangible Assets (Excluding Goodwill)	$ 50,000,000		$ 50,000,000	$ 0

INVESTMENTS IN UNCONSOLIDATED ENTITIES - NARRATIVE (Details) $ in Millions		1 Months Ended		10 Months Ended	12 Months Ended
	Nov. 15, 2017	Sep. 30, 2018 USD ($)	Feb. 28, 2017 USD ($)	Dec. 31, 2018 USD ($) MT Bcf	Dec. 31, 2018 USD ($) MT Bcf	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Mar. 09, 2018	Nov. 14, 2017	Sep. 26, 2016	Sep. 25, 2016	May 31, 2016	May 09, 2016	Mar. 31, 2016 USD ($)	Mar. 29, 2016	Jun. 30, 2015 USD ($)	Nov. 30, 2014 USD ($)	Oct. 01, 2014 USD ($)
Schedule of Equity Method Investments [Line Items]
Undistributed earnings of equity method investments				$ 332	$ 332	$ 89
Undistributed earnings, equity method investments, over 50 percent owned					221
Debt instrument converted					0	19	$ 0
Equity method investment				9,652	9,652	0
Interest costs capitalized					202	$ 256	236
Fair value at origin guarantee obligation associated with cash flow requirements																		$ 82
Current guarantor obligations				$ 9	$ 9
R B S Sempra Commodities [Member]
Schedule of Equity Method Investments [Line Items]
Other than temporary impairment		$ 65
Cameron LNG [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage in equity method investee				50.20%	50.20%
Threshold for canceling of hedge, Percent of unamortized principal					50.00%
Indirect economic and beneficial and ownership interest prior to financial completion				37.65%	37.65%
Indirect economic and beneficial and ownership interest after financial completion				10.00%	10.00%
Cameron LNG [Member] \| Other Long Term Debt, Due July 2030 [Member]
Schedule of Equity Method Investments [Line Items]
Guarantor Obligations, Maximum Exposure, Percentage				50.20%	50.20%
Debt instrument, maximum borrowing amount				$ 3,900	$ 3,900
Sempra Energy and Other [Member] \| R B S Sempra Commodities [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage in equity method investee				49.00%	49.00%	49.00%
Sempra Mexico [Member] \| IEnova Pipelines [Member]
Schedule of Equity Method Investments [Line Items]
Acquired percentage interest										50.00%
Ownership percentage in equity method investee											50.00%
Sempra Mexico [Member] \| IMG [Member]
Schedule of Equity Method Investments [Line Items]
Payments to acquire equity method investments					$ 80	$ 72	100
Ownership percentage in equity method investee				40.00%	40.00%
Transportation service contract term					25 years
Sempra Mexico [Member] \| TransCanada [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage in equity method investee				60.00%	60.00%
Sempra Mexico [Member] \| DEN [Member] \| IEnova Pipelines [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage in equity method investee										50.00%
Sempra Renewables [Member]
Schedule of Equity Method Investments [Line Items]
Payments to acquire equity method investments					$ 5		18
Sempra Renewables [Member] \| Wind Investments [Member]
Schedule of Equity Method Investments [Line Items]
Other than temporary impairment					200
Equity method investment				$ 291	291
Sempra LNG & Midstream [Member] \| Rockies Express [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage in equity method investee												25.00%	25.00%	25.00%	25.00%
Equity method investment														$ 484
Sempra LNG & Midstream [Member] \| Cameron LNG [Member]
Schedule of Equity Method Investments [Line Items]
Payments to acquire equity method investments					$ 228	1
Proved developed reserves \| Bcf				1.5	1.5
Project capacity \| MT				13.9	13.9
Proved undeveloped reserve \| MT				12	12
Proved undeveloped reserve per day \| Bcf				1.7	1.7
Interest costs capitalized					$ 47	47	$ 47
Debt amount				$ 7,400	$ 7,400
Percentage of debt hedged by interest rate derivatives				50.00%	50.00%
Notional amount of derivatives																$ 1,500	$ 3,700
Sempra LNG & Midstream [Member] \| LIBOR [Member] \| Cameron LNG [Member]
Schedule of Equity Method Investments [Line Items]
Weighted average rate prior to project completion				1.59%	1.59%
Weighted average rate after project completion				1.78%	1.78%
Fixed percentage interest rate																3.32%	3.19%
Corporate Joint Venture [Member] \| Sempra South American Utilities [Member] \| Eletrans [Member]
Schedule of Equity Method Investments [Line Items]
Payments to acquire equity method investments						$ 1
Debt instrument converted			$ 19
Other Project Partners [Member] \| Cameron LNG [Member] \| Other Long Term Debt, Due July 2030 [Member]
Schedule of Equity Method Investments [Line Items]
Guarantor Obligations, Maximum Exposure, Percentage				49.80%	49.80%
Ductos Energéticos del Norte [Member] \| Sempra Mexico [Member] \| IEnova [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage in consolidated entity	100.00%
Acquired percentage interest	50.00%
Ownership percentage in equity method investee									50.00%
Oncor Holdings Electric Delivery Company LLC [Member]
Schedule of Equity Method Investments [Line Items]
Acquired percentage interest								80.25%
Net income/earnings				$ 371
Payments to acquire equity method investments					$ 230
Oncor Electric Delivery Company LLC [Member]
Schedule of Equity Method Investments [Line Items]
Acquired percentage interest								80.25%
Oncor Electric Delivery Company LLC [Member] \| Sempra Texas Holdings Corp [Member]
Schedule of Equity Method Investments [Line Items]
Acquired percentage interest								80.03%

SAN ONOFRE NUCLEAR GENERATING STATION (SONGS) (Tables)

12 Months Ended

Dec. 31, 2018

Regulated Operations [Abstract]

Schedule of 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 12.



NUCLEAR DECOMMISSIONING TRUSTS
(Dollars in millions)
	Cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
At December 31, 2018:
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies⁽¹⁾	$	52	$	1	$	—		$	53
Municipal bonds⁽²⁾	266		4		(1		)	269
Other securities⁽³⁾	238		1		(5		)	234
Total debt securities	556		6		(6		)	556
Equity securities	168		253		(10		)	411
Cash and cash equivalents	7		—		—			7
Total	$	731	$	259	$	(16	)	$	974
At December 31, 2017:
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	$	54	$	—	$	—		$	54
Municipal bonds	245		7		(2		)	250
Other securities	215		3		(1		)	217
Total debt securities	514		10		(3		)	521
Equity securities	171		326		(1		)	496
Cash and cash equivalents	16		—		—			16
Total	$	701	$	336	$	(4	)	$	1,033


⁽¹⁾	Maturity dates are 2019-2048.


⁽²⁾	Maturity dates are 2019-2056.

⁽³⁾

Maturity dates are 2019-2064.

Schedule of Securities Sold

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



SALES OF SECURITIES IN THE NDT
(Dollars in millions)
	Years ended December 31,
	2018			2017			2016
Proceeds from sales	$	890		$	1,314		$	1,134
Gross realized gains	42			157			111
Gross realized losses	(10		)	(14		)	(29		)

PREFERRED STOCK (Details) - USD ($) $ / shares in Units, $ in Millions			12 Months Ended
	Jul. 13, 2018	Jan. 09, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Preferred Stock [Line Items]
Preferred stock shares authorized (in shares)			50,000,000	50,000,000
Value of shares issued			$ 2,258	$ 0	$ 0
San Diego Gas and Electric Company [Member]
Preferred Stock [Line Items]
Preferred stock shares authorized (in shares)			45,000,000	45,000,000
Number of preferred stock shares outstanding (in shares)			0	0
Sempra Energy [Member]
Preferred Stock [Line Items]
Preferred stock shares authorized (in shares)			50,000,000
Southern California Gas Company [Member]
Preferred Stock [Line Items]
Preferred stock shares authorized (in shares)			11,000,000	11,000,000
Number of preferred stock shares outstanding (in shares)			1,000,000	1,000,000
Series A Preferred Stock [Member]
Preferred Stock [Line Items]
Number of preferred stock shares outstanding (in shares)			17,250,000
Series A Preferred Stock [Member] \| Sempra Energy [Member]
Preferred Stock [Line Items]
Shares issued (in shares)		17,250,000
Stated percentage rate		6.00%
Conversion price per share (in dollars per share)		$ 100	$ 100.00
Conversion price per share net of underwriting discount (in dollars per share)		98.20
Liquidation preference (in dollars per share)		$ 100.00
Value of shares issued	$ 565	$ 1,690
Underwriting discount	$ 10	$ 32
Threshold appreciation price (in dollars per share)		$ 131.075	$ 131.075
Number of shares issuable		13,200,000
Share dividends issued, percentage of weighted average share price		97.00%
Series B Preferred Stock [Member]
Preferred Stock [Line Items]
Number of preferred stock shares outstanding (in shares)			5,750,000
Series B Preferred Stock [Member] \| Sempra Energy [Member]
Preferred Stock [Line Items]
Shares issued (in shares)	5,750,000
Stated percentage rate	6.75%
Conversion price per share (in dollars per share)	$ 100		$ 100.00
Conversion price per share net of underwriting discount (in dollars per share)	98.35
Liquidation preference (in dollars per share)	100.00
Threshold appreciation price (in dollars per share)	$ 136.500		$ 136.50
Number of shares issuable	4,200,000
Share dividends issued, percentage of weighted average share price	97.00%
So Cal Gas Series Preferred Stock [Member]
Preferred Stock [Line Items]
Preferred stock shares authorized (in shares)			5,000,000
So Cal Gas Series Preferred Stock [Member] \| Southern California Gas Company [Member]
Preferred Stock [Line Items]
Preferred stock shares authorized (in shares)			5,000,000
Preferred stock outstanding			$ 22	$ 22
Twenty Five Dollar Par, Six Percent Series [Member] \| Southern California Gas Company [Member]
Preferred Stock [Line Items]
Preferred stock shares authorized (in shares)			1,000,000
Number of preferred stock shares outstanding (in shares)			79,011
Par value (in dollars per share)			$ 25
Preferred stock outstanding			$ 3	3
Twenty Five Dollar Par, Six Percent Series A [Member] \| Southern California Gas Company [Member]
Preferred Stock [Line Items]
Number of preferred stock shares outstanding (in shares)			783,032
Liquidation preference (in dollars per share)			$ 25
Par value (in dollars per share)			$ 25
Preferred stock outstanding			$ 19	19
So Cal Gas Preferred Stock Owned By Pacific Enterprises [Member]
Preferred Stock [Line Items]
Preferred stock outstanding held by parent			$ (2)	(2)
So Cal Gas Preferred Stock Owned By Pacific Enterprises [Member] \| Southern California Gas Company [Member]
Preferred Stock [Line Items]
Number of preferred stock shares outstanding (in shares)			50,970
Preferred Stock Of Subsidiaries [Member]
Preferred Stock [Line Items]
Preferred stock outstanding			$ 20	$ 20
Maximum [Member] \| Series A Preferred Stock [Member] \| Sempra Energy [Member]
Preferred Stock [Line Items]
Threshold appreciation price (in dollars per share)		$ 131.075	$ 131.075
Shares issuable for each instrument		93.45%	93.45%
Maximum [Member] \| Series B Preferred Stock [Member] \| Sempra Energy [Member]
Preferred Stock [Line Items]
Threshold appreciation price (in dollars per share)	$ 136.500		$ 136.50
Shares issuable for each instrument	87.91%		87.91%
Minimum [Member] \| Series A Preferred Stock [Member] \| Sempra Energy [Member]
Preferred Stock [Line Items]
Threshold appreciation price (in dollars per share)		$ 107.000	$ 107.00
Shares issuable for each instrument		76.29%	76.29%
Minimum [Member] \| Series B Preferred Stock [Member] \| Sempra Energy [Member]
Preferred Stock [Line Items]
Threshold appreciation price (in dollars per share)	$ 113.750		$ 113.75
Shares issuable for each instrument	73.26%		73.26%
Over-Allotment Option [Member] \| Series A Preferred Stock [Member] \| Sempra Energy [Member]
Preferred Stock [Line Items]
Shares issued (in shares)		2,250,000
Over-Allotment Option [Member] \| Series B Preferred Stock [Member] \| Sempra Energy [Member]
Preferred Stock [Line Items]
Shares issued (in shares)	750,000

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA (Policies)

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Principles of Consolidation and Basis of Presentation

PRINCIPLES OF CONSOLIDATION

Sempra Energy

Sempra Energy’s Consolidated Financial Statements include the accounts of Sempra Energy, a California-based Fortune 500 energy-services holding company, and its consolidated subsidiaries and VIEs. Sempra Global is the holding company for most of our subsidiaries that are not subject to California or Texas utility regulation. Sempra Energy’s businesses are managed within seven separate reportable segments, which we discuss in Note 17. All references in these Notes to our 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, IEnova, as well as certain holding companies and risk management activity. IEnova is a separate legal entity comprised of Sempra Energy’s operations in Mexico. IEnova is included within our Sempra Mexico reportable segment, but is not the same in its entirety as the reportable segment. IEnova’s financial results are reported in Mexico under International Financial Reporting Standards, as required by the Mexican Stock Exchange, where its shares are traded under the symbol IENOVA.

Sempra Energy uses the equity method to account for investments in companies over which we have the ability to exercise significant influence, but not control. We discuss our investments in unconsolidated entities in Notes 5, 6 and 12.

SDG&E

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

SoCalGas

SoCalGas’ common stock is wholly owned by PE, which is a wholly owned subsidiary of Sempra Energy.

In this report, we refer to SDG&E and SoCalGas collectively as the California Utilities.

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 Consolidated Financial Statements and Notes to Consolidated Financial Statements when discussed together or collectively:


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


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

▪

the Financial Statements and related Notes of SoCalGas.

Reclassification on the Consolidated Statements of Operations

Reclassification on the Consolidated Statements of OperationsWe have made a reclassification on the Consolidated Statements of Operations for the years ended December 31, 2017 and 2016 to conform to current year presentation. Line item captions for equity earnings (losses) before income tax and net of income tax have been combined into one line and presented after income tax expense (benefit). This reclassification is intended to treat the presentation of earnings from all equity method investees consistently and simplify the presentation on the statement of operations, while continuing to provide additional detail in the notes to the financial statements

Use of Estimates in the Preparation of the Financial Statements

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

Subsequent Events

Subsequent EventsWe evaluated events and transactions that occurred after December 31, 2018 through the date the financial statements were issued, and in the opinion of management, the accompanying statements reflect all adjustments and disclosures necessary for a fair presentation.

Effects of Regulation

EFFECTS OF REGULATION

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

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


▪	the nature of the event giving rise to the assessment;


▪	existing statutes and regulatory code;


▪	legal precedents;


▪	regulatory principles and analogous regulatory actions;


▪	testimony presented in regulatory hearings;


▪	regulatory orders;


▪	a commission-authorized mechanism established for the accumulation of costs;


▪	status of applications for rehearings or state court appeals;


▪	specific approval from a commission; and


▪	historical experience.

Sempra Mexico’s natural gas distribution utility, Ecogas, also applies U.S. GAAP for rate-regulated utilities to its operations, including the same evaluation of probability of recovery of regulatory assets described above.

We provide information concerning regulatory assets and liabilities in Note 4.

Our Sempra Texas Utility segment is comprised of our equity method investment in Oncor Holdings, which owns 80.25 percent of Oncor, as we discuss in Notes 5 and 6. Oncor is a regulated electric transmission and distribution utility in the State of Texas. Oncor’s rates are regulated by the PUCT and certain cities and are subject to regulatory rate-setting processes and annual earnings oversight. Oncor prepares its financial statements in accordance with the provisions of U.S. GAAP governing rate-regulated operations.

Sempra South American Utilities has controlling interests in two electric distribution utilities in South America, Chilquinta Energía in Chile and Luz del Sur in Peru, and their subsidiaries. Revenues are based on tariffs that are set by government agencies in their respective countries based on an efficient model distribution company defined by those agencies. Because the tariffs are based on a model and are intended to cover the costs of the model company, but are not based on the costs of the specific utility and may not result in full cost recovery, these utilities do not meet the requirements necessary for, and therefore do not apply, regulatory accounting treatment under U.S. GAAP.

Certain business activities at IEnova are regulated by the CRE 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 AFUDC related to equity. We discuss AFUDC below in “Property, Plant and Equipment.”

Fair Value Measurements

FAIR VALUE MEASUREMENTS

We measure certain assets and liabilities at fair value on a recurring basis, primarily nuclear decommissioning and benefit plan trust assets and derivatives. We also measure certain assets at fair value on a non-recurring basis in certain circumstances. These assets can include goodwill, intangible assets, equity method investments and other long-lived assets.

“Fair value” is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price).

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

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

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

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


▪	quoted forward prices for commodities;


▪	time value;


▪	current market and contractual prices for the underlying instruments;


▪	volatility factors; and


▪	other relevant economic measures.

Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Our financial instruments in this category include listed equities, domestic corporate bonds, municipal bonds and other foreign bonds, primarily

in the NDT and benefit plan trusts, and non-exchange-traded derivatives such as interest rate instruments and over-the-counter forwards and options.

Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value from the perspective of a market participant. Our Level 3 financial instruments consist of CRRs and fixed-price electricity positions at SDG&E.Fair Value of Financial InstrumentsThe fair values of certain of our financial instruments (cash, accounts and notes receivable, short-term 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.RECURRING FAIR VALUE MEASURES

The fair value of commodity derivative assets and liabilities is presented in accordance with our netting policy, as we discuss in Note 11 in “Financial Statement Presentation.”

▪

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 December 31, 2018 and 2017.

Cash and Cash Equivalents and Restricted Cash

CASH AND CASH EQUIVALENTSCash equivalents are highly liquid investments with original maturities of three months or less at the date of purchase.

Collection Allowances

COLLECTION ALLOWANCESWe record allowances for the collection of trade and other accounts and notes receivable, which include allowances for doubtful customer accounts and for other receivables.We evaluate accounts receivable collectability using a combination of factors, including past due status based on contractual terms, trends in write-offs, the age of the receivable, counterparty creditworthiness, economic conditions and specific events, such as bankruptcies. Adjustments to collection allowances are made when necessary based on the results of analysis, the aging of receivables, and historical and industry trends.We write off accounts receivable in the period in which we deem the receivable to be uncollectible. We record recoveries of accounts receivable previously written off when it is known that they will be received.

Inventories

INVENTORIES

The California Utilities value natural gas inventory using the 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 if the natural gas inventory withdrawn from storage during the year is not replaced by year end. The California Utilities generally value materials and supplies at the lower of average cost or net realizable value.

Sempra South American Utilities, Sempra Mexico, Sempra Renewables and Sempra LNG & Midstream value natural gas inventory and materials and supplies at the lower of average cost or net realizable value. Sempra Mexico and Sempra LNG & Midstream value LNG inventory using the first-in first-out method.

Income Taxes

INCOME TAXES

Income tax expense includes current and deferred income taxes. We record deferred income taxes for temporary differences between the book and the tax basis of assets and liabilities. ITCs from prior years are amortized to income by the California Utilities over the estimated service lives of the properties as required by the CPUC. At our other businesses, we reduce the book basis of the related asset by the amount of ITCs earned. At Sempra Renewables, PTCs have been recognized as income tax benefits as earned.

Under the regulatory accounting treatment required for flow-through temporary differences, the California Utilities and Sempra Mexico recognize:


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


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

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

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

On December 22, 2017, the TCJA was signed into law. As a result, all cumulative undistributed earnings from non-U.S. subsidiaries were deemed repatriated and subjected to a one-time U.S. federal deemed repatriation tax. To the extent we intend to repatriate cash into the U.S., incremental U.S. state and non-U.S. withholding taxes are accrued. We currently do not record deferred income taxes for other basis differences between financial statement and income tax investment amounts in non-U.S. subsidiaries to the extent the related cumulative undistributed earnings are indefinitely reinvested. We recognize income tax expense for basis differences related to global intangible low-taxed income as a period cost if and when incurred.

We provide additional information about income taxes in Note 8.On December 22, 2017, the TCJA was signed into law. This legislation significantly changed the IRC. Under U.S. GAAP, certain effects of the TCJA were required to be recognized upon enactment, and, as a result, Sempra Energy, SDG&E, and SoCalGas recorded these effects in 2017.


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


▪	the equity portion of AFUDC, which is non-taxable;


▪	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; and


▪	state income taxes.

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

The 2016 GRC FD required SDG&E and SoCalGas to each establish a two-way income tax expense memorandum account to track certain revenue variances resulting from certain differences between the income tax expense forecasted in the GRC and the income tax expense incurred from 2016 through 2018. We discuss the tracking accounts further in Note 4.

Greenhouse Gas Allowances and Obligations and Emissions and Renewable Energy Certificates

GREENHOUSE GAS ALLOWANCES AND OBLIGATIONSThe California Utilities, Sempra Mexico and Sempra LNG & Midstream are required by California AB 32 to acquire GHG allowances for every metric ton of carbon dioxide equivalent emitted into the atmosphere during electric generation and natural gas transportation. At the California Utilities, many GHG allowances are allocated to us on behalf of our customers at no cost. We record purchased and allocated GHG allowances at the lower of weighted-average cost or market. We measure the compliance obligation, which is based on emissions, at the carrying value of allowances held plus the fair value of additional allowances necessary to satisfy the obligation. The California Utilities balance costs and revenues associated with the GHG program through regulatory balancing accounts. Sempra Mexico and Sempra LNG & Midstream record the cost of GHG obligations in cost of sales. We remove the assets and liabilities from the balance sheets as the allowances are surrendered.RENEWABLE ENERGY CERTIFICATES

RECs are energy rights established by governmental agencies for the environmental and social promotion of renewable electricity generation. A REC, and its associated attributes and benefits, can be sold separately from the underlying physical electricity associated with a renewable-based generation source in certain markets.

Retail sellers of electricity obtain RECs through renewable energy PPAs, internal generation or separate purchases in the market to comply with the RPS established by the governmental agencies. RECs provide documentation for the generation of a unit of renewable energy that is used to verify compliance with the RPS. The cost of RECs at SDG&E, which is recoverable in rates, is recorded in Cost of Electric Fuel and Purchased Power on the Consolidated Statements of Operations.

Property, Plant and Equipment (PP&E)

PROPERTY, PLANT AND EQUIPMENT

PP&E primarily represents the buildings, equipment and other facilities used by the California Utilities to provide natural gas and electric utility services, and by the Sempra Global businesses in their operations, including construction work in progress at these segments. PP&E also includes lease improvements and other equipment at Parent and Other, as well as property acquired under a build-to-suit lease, which we discuss further in Note 16.

Our plant costs include:


▪	labor;


▪	materials and contract services; and


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

In addition, the cost of utility plant at our rate-regulated businesses and PP&E under regulated projects that meet the regulatory accounting requirements of U.S. GAAP at Sempra Mexico includes AFUDC. We discuss AFUDC below. The cost of other PP&E includes capitalized interest.

Maintenance costs are expensed as incurred. The cost of most retired depreciable utility plant assets less salvage value is charged to accumulated depreciation.The California Utilities finance their construction projects with debt and equity funds. The CPUC and the FERC allow the recovery of the cost of these funds by the capitalization of AFUDC, calculated using rates authorized by the CPUC and the FERC, as a cost component of PP&E. The California Utilities earn a return on the capitalized AFUDC after the utility property is placed in service and recover the AFUDC from their customers over the expected useful lives of the assets.

Pipeline projects currently under construction by Sempra Mexico that are both subject to certain regulation and meet U.S. GAAP regulatory accounting requirements record the impact of AFUDC.

We capitalize interest costs incurred to finance capital projects. We also capitalize interest on equity method investments that have not commenced planned principal operations. Depreciation expense is computed using the straight-line method over the asset’s estimated original composite useful life, the CPUC-prescribed period for the California Utilities, or the remaining term of the site leases, whichever is shortest.

Goodwill and Other Intangible Assets

Other Intangible Assets at December 31, 2018 primarily includes:


▪	a renewable energy transmission and consumption permit previously granted by the CRE that was acquired in connection with the acquisition of the Ventika wind power generation facilities;


▪	a favorable O&M agreement acquired in connection with the acquisition of DEN, which we discuss in Note 5; and

▪

in connection with the CTNG acquisition that we disclose in Note 5, concession permits allowing CTNG to operate transmission lines and substation assets into perpetuity.GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

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

For our annual goodwill impairment testing, under current U.S. GAAP guidance we have the option to first make a qualitative assessment of whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount before applying the two-step, quantitative goodwill impairment test. If we elect to perform the qualitative assessment, we evaluate

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


▪	consideration of market transactions;


▪	future cash flows;


▪	the appropriate risk-adjusted discount rate;


▪	country risk; and

▪

entity risk

Long-lived Assets

LONG-LIVED ASSETS

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


▪	significant decreases in the market price of an asset;


▪	a significant adverse change in the extent or manner in which we use an asset or in its physical condition;


▪	a significant adverse change in legal or regulatory factors or in the business climate that could affect the value of an asset;


▪	a current period operating or cash flow loss combined with a history of operating or cash flow losses or a projection of continuing losses associated with the use of a long-lived asset; and


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

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

Variable Interest Entities (VIE)

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


▪	the purpose and design of the VIE;


▪	the nature of the VIE’s risks and the risks we absorb;


▪	the power to direct activities that most significantly impact the economic performance of the VIE; and

▪

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

Asset Retirement Obligations

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

Contingencies

CONTINGENCIES

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


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


▪	the amount of the loss can be reasonably estimated.

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

Legal Fees

LEGAL FEESLegal fees that are associated with a past event for which a liability has been recorded are accrued when it is probable that fees also will be incurred and amounts are estimable.LEGAL PROCEEDINGSWe 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 reasonably estimate 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.

Comprehensive Income

COMPREHENSIVE INCOME

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


▪	foreign currency translation adjustments;


▪	certain hedging activities;


▪	changes in unamortized net actuarial gain or loss and prior service cost related to pension and other postretirement benefits plans; and


▪	unrealized gains or losses on available-for-sale securities.

The Consolidated Statements of Comprehensive Income (Loss) show the changes in the components of OCI, including the amounts attributable to NCI.

Noncontrolling Interests

NONCONTROLLING INTERESTSOwnership 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 NCI. As a result, NCI is reported as a separate component of equity on the Consolidated Balance Sheets. Earnings or losses attributable to NCI are separately identified on the Consolidated Statements of Operations, and net income or loss and comprehensive income or loss attributable to NCI are separately identified on the Consolidated Statements of Comprehensive Income (Loss) and Consolidated Statements of Changes in Equity.

Other Cost of Sales

OTHER COST OF SALES

Other Cost of Sales primarily includes:


▪	pipeline capacity costs, including the permanent release of pipeline capacity in 2016 and the associated recoveries in 2017, at Sempra LNG & Midstream;


▪	pipeline transportation and natural gas marketing costs at Sempra LNG & Midstream;


▪	electric construction services costs at Sempra South American Utilities’ energy-services companies; and

▪

energy management service fees and costs associated with construction performed for and invoiced to third parties at Sempra Mexico.

Operation and Maintenance Expenses

OPERATION AND MAINTENANCE EXPENSESOperation and Maintenance includes O&M and general and administrative costs, consisting primarily of personnel costs, purchased materials and services, litigation expense and rent.

Foreign Currency Translation

FOREIGN CURRENCY TRANSLATION

The majority of our operations in South America as well as our natural gas distribution utility in Mexico use their local currency as their functional currency. The assets and liabilities of their foreign operations are translated into U.S. dollars at current exchange rates at the end of the reporting period, and revenues and expenses are translated at average exchange rates for the year. The resulting noncash translation adjustments do not enter into the calculation of earnings or retained earnings, but are reflected in OCI and in AOCI.

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

New Accounting Standards

NEW ACCOUNTING STANDARDS

We describe below recent accounting pronouncements that have had or may have a significant effect on our financial condition, results of operations, cash flows or disclosures.

The following table shows the expected (decrease) increase on our balance sheets at January 1, 2019 from adoption of the lease standard.



EXPECTED IMPACT FROM ADOPTION OF THE LEASE STANDARD
(Dollars in millions)
	Sempra Energy Consolidated			SDG&E		SoCalGas
Other current assets	$	(68	)	$	—	$	—
Property, plant and equipment, net	(147		)	—		—
Right-of-use assets – operating leases	623			130		116
Deferred income taxes	(3		)	—		—
Other current liabilities	81			20		23
Long-term debt	(138		)	—		—
Deferred credits and other	445			110		93
Retained earnings	17			—		—

Upon adoption of ASU 2017-07, our Consolidated Statements of Operations were impacted as follows:



IMPACT FROM ADOPTION OF ASU 2017-07
(Dollars in millions)
	Years ended December 31,
	2017							2016
	As previously reported		Effect of adoption			As adjusted		As previously reported		Effect of adoption			As adjusted
Sempra Energy:
Operation and maintenance	$	3,117	$	(21	)	$	3,096	$	2,970	$	6		$	2,976
Other income, net	254		(21		)	233		132		6			138
SDG&E:
Operation and maintenance	$	1,020	$	4		$	1,024	$	1,048	$	14		$	1,062
Total operating expenses	3,763		4			3,767		3,263		14			3,277
Operating income	713		(4		)	709		990		(14		)	976
Other income, net	66		4			70		50		14			64
SoCalGas:
Operation and maintenance	$	1,479	$	(5	)	$	1,474	$	1,385	$	6		$	1,391
Total operating expenses	3,163		(5		)	3,158		2,914		6			2,920
Operating income	622		5			627		557		(6		)	551
Other income, net	36		(5		)	31		32		6			38

We expect the impact from adoption of ASU 2018-02 on January 1, 2019 to be as follows:


▪	Sempra Energy: increase of $40 million to beginning Retained Earnings, $2 million to noncurrent Regulatory Liabilities and $42 million to Accumulated Other Comprehensive Loss;


▪	SDG&E: increase of $2 million to beginning Retained Earnings and Accumulated Other Comprehensive Loss; and


▪	SoCalGas: increase of $2 million to beginning Retained Earnings, $2 million to noncurrent Regulatory Liabilities and $4 million to Accumulated Other Comprehensive Loss.

The following table shows the expected increase (decrease) from adoption of the lease standard on our balance sheet at January 1, 2019.



EXPECTED IMPACT FROM ADOPTION OF THE LEASE STANDARD
(Dollars in millions)
Right-of-use assets – operating leases	$	191
Deferred income taxes	(3		)
Property, plant and equipment, net⁽¹⁾	(147		)
Other current liabilities	3
Long-term debt	(138		)
Other long-term liabilities	159
Retained earnings⁽²⁾	17


⁽¹⁾	Included in Other Assets.


⁽²⁾	Included in Shareholders’ Equity.



IMPACT FROM ADOPTION OF ASU 2017-07
(Dollars in millions)
	Years ended December 31,
	2017									2016
	As previously reported			Effect of adoption			As adjusted			As previously reported			Effect of adoption			As adjusted
Sempra Energy:
Operation and maintenance	$	(87	)	$	7		$	(80	)	$	(81	)	$	5		$	(76	)
Other income (expense), net	107			(7		)	100			(2		)	(5		)	(7		)

Revenue from Contract with Customer

Our revenues from contracts with customers are primarily related to the generation, transmission and distribution of electricity and the transmission, distribution and storage of natural gas through our regulated utilities. We also provide other midstream and renewable energy-related services. We assess our revenues on a contract-by-contract basis as well as a portfolio basis to determine the nature, amount, timing and uncertainty, if any, of revenues being recognized.

We generally recognize revenues when performance of the promised commodity service is provided to our customers and invoice our customers for an amount that reflects the consideration we are entitled to in exchange for those services. We consider the delivery and transmission of electricity and natural gas and providing of natural gas storage services as ongoing and integrated services. Generally, electricity or natural gas services are received and consumed by the customer simultaneously. Our performance obligations related to these services are satisfied over time and represent a series of distinct services that are substantially the same and that have the same pattern of transfer to the customers. We recognize revenue based on units delivered, as the satisfaction of our performance obligations can be directly measured by the amount of electricity or natural gas delivered to the customer. In most cases, the right to consideration from the customer directly corresponds to the value transferred to the customer and we recognize revenue in the amount that we have the right to invoice. We provide further details of our revenue streams below.

The payment terms in our customer contracts vary. Typically, we have an unconditional right to customer payments, which are due after the performance obligation to the customer is satisfied. The term between invoicing and when payment is due is typically between 10 and 90 days.

We have elected the practical expedient to exclude sales and usage-based taxes from revenues. In addition, the California Utilities pay franchise fees to operate in various municipalities. The California Utilities bill these franchise fees to their customers based on a CPUC-authorized rate. These franchise fees, which are required to be paid regardless of the California Utilities’ ability to collect from the customer, are accounted for on a gross basis and reflected in utilities revenues from contracts with customers and operating expense.

Utilities Revenues

Utilities revenues represent the majority of our consolidated revenues from contracts with customers and include:

The generation, transmission and distribution of electricity at:


▪	SDG&E


▪	Sempra South American Utilities’ Chilquinta Energía and Luz del Sur

The transmission, distribution and storage of natural gas at:


▪	SDG&E


▪	SoCalGas


▪	Sempra Mexico’s Ecogas

Utilities revenues are derived from and recognized upon the delivery of electricity or natural gas services to customers. Amounts that we bill our customers are based on tariffs set by regulators within the respective state or country. For SDG&E and SoCalGas, which follow the provisions of U.S. GAAP governing rate-regulated operations as we discuss in Note 1, amounts that we bill to customers also include adjustments for previously recognized regulatory revenues.

The California Utilities and Ecogas recognize revenues based on regulator-approved revenue requirements, which allows the utilities to recover their reasonable cost of O&M and provides the opportunity to realize their authorized rates of return on their investments. While the California Utilities’ revenues are not affected by actual sales volumes, the pattern of their revenue recognition during the year is affected by seasonality. SoCalGas recognizes annual authorized revenue for core natural gas customers using seasonal factors established in the Triennial Cost Allocation Proceeding. Accordingly, a significant portion of SoCalGas’ annual earnings are recognized in the first and fourth quarters of each year. SDG&E’s authorized revenue recognition is also impacted by seasonal factors, resulting in higher earnings in the third quarter when electric loads are typically higher than in the other three quarters of the year.

SDG&E has an arrangement to provide the California ISO with the ability to control its high-voltage transmission lines for prices approved by the FERC. Revenue is recognized over time as access is provided to the California ISO.

Chilquinta Energía and Luz del Sur, our electric distribution utilities in South America, recognize revenues based on tariffs designed to provide for a pass-through to customers of transmission and energy costs, recovery of reasonable O&M based on an efficient model distribution company, incentives to reduce costs and make needed capital investments and a regulated rate of return on the distributor’s regulated asset base.

Factors that can affect the amount, timing and uncertainty of revenues and cash flows include weather, seasonality and timing of customer billings, which may result in unbilled revenues that can vary significantly from month to month and generally approximate one-half month’s deliveries.

The California Utilities recognize revenues from the sale of allocated California GHG emissions allowances at quarterly auctions administered by CARB. GHG allowances are delivered to CARB in advance of the quarterly auctions, and the California Utilities have the right to payment when the GHG allowances are sold at auction. GHG revenue is recognized on a point in time basis within the quarter the auction is held. The California Utilities balance costs and revenues associated with the GHG program through regulatory balancing accounts.

Midstream Revenues

Midstream revenues at Sempra Mexico and Sempra LNG & Midstream typically represent revenues from long-term, U.S. dollar-based contracts with customers for the sale of natural gas and LNG, as well as storage and transportation of natural gas. Invoiced amounts are based on the volume of natural gas delivered and contracted prices.

Sempra Mexico’s marketing operations sell natural gas to the CFE and other customers under supply agreements. Sempra Mexico recognizes the revenue from the sale of natural gas upon transfer of the natural gas via pipelines to customers at the agreed upon delivery points, and in the case of the CFE, at its thermoelectric power plants.

Through its marketing operations, Sempra LNG & Midstream has contracts to sell natural gas and LNG to Sempra Mexico that allow Sempra Mexico to satisfy its obligations under supply agreements with the CFE and other customers, and to supply Sempra Mexico’s TdM power plant. Because Sempra Mexico either immediately delivers the natural gas to its customers or consumes the benefits simultaneously (by using the gas to supply TdM), revenues from Sempra LNG & Midstream’s sale of natural gas to Sempra Mexico are generally recognized over time as delivered. Revenues from LNG sales are recognized at the point when the cargo is delivered to Sempra Mexico.

Revenues from the sale of LNG and natural gas by Sempra LNG & Midstream to Sempra Mexico are adjusted for indemnity payments and profit sharing. We consider these adjustments to be forms of variable consideration that are associated with the sale of LNG and natural gas to Sempra Mexico, and therefore, Sempra LNG & Midstream records the related costs as an offset to revenues, with no impact to Sempra Energy’s consolidated revenues.

We recognize storage revenue from firm capacity reservation agreements, under which we collect a fee for reserving storage capacity for customers in our underground storage facilities. Under these firm agreements, customers pay a monthly fixed reservation fee based on the storage capacity reserved rather than the actual volumes stored. For the fixed-fee component, revenue is recognized on a straight-line basis over the term of the contract. We bill customers for any capacity used in excess of the contracted capacity and such revenues are recognized in the month of occurrence. We also recognize revenue for interruptible storage services. As we discuss in Note 5, on February 7, 2019, Sempra LNG & Midstream completed the sale of its non-utility natural gas storage assets in the southeast U.S. (comprised of Mississippi Hub and Bay Gas).

We generate pipeline transportation revenues from firm agreements, under which customers pay a fee for reserving transportation capacity. Revenue is recognized when the volumes are delivered to the customers’ agreed upon delivery point. We recognize revenues for our stand-ready obligation to provide capacity and transportation services throughout the contractual delivery period, as the benefits are received and consumed simultaneously as customers utilize pipeline capacity for the transport and receipt of natural gas and LPG. Invoiced amounts are based on a variable usage fee and a fixed capacity charge, adjusted for the CPI, the effects of any foreign currency translation and the actual quantity of commodity transported.

Renewables Revenues

Sempra Renewables and Sempra Mexico develop, invest in and operate solar and wind facilities that have long-term PPAs to sell the electricity and the related green energy attributes they generate to customers, generally load serving entities, and also for Sempra Mexico, industrial and other customers. Load serving entities will sell electric service to their end-users and wholesale customers immediately upon receipt of our power delivery, and industrial and other customers immediately consume the electricity to run their facilities, and thus, we recognize the revenue under the PPAs as the electricity is generated. We invoice customers based on the volume of energy delivered at rates pursuant to the PPAs. As we discuss in Note 5, in December 2018, we completed the sale of Sempra Renewables’ U.S. operating solar assets, solar and battery storage development projects and its 50-percent ownership interest in a wind power generation facility. In February 2019, Sempra Renewables entered into an agreement to sell its remaining wind assets and investments. We expect to complete the sale in the second quarter of 2019.

Sempra LNG & Midstream has a contractual agreement to provide scheduling and marketing of renewable power for Sempra Renewables. Invoiced amounts are based on a fixed fee per MWh scheduled.

Other Revenues from Contracts with Customers

Tecnored and Tecsur, our energy services companies in South America, generate revenues from the retail sale of electric materials and providing electric construction and infrastructure services to their customers.

TdM is a natural gas-fired power plant that generates revenues from selling electricity and/or resource adequacy to the California ISO and to governmental, public utility and wholesale power marketing entities, as the power is delivered at the interconnection point.

Remaining Performance Obligations

We do not disclose information about remaining performance obligations for (a) contracts with an original expected length of one year or less, (b) revenues recognized at the amount at which we have the right to invoice for services performed, or (c) variable consideration allocated to wholly unsatisfied performance obligations.

Certain of our revenues are derived from sources other than contracts with customers and are accounted for under other accounting standards outside the scope of ASC 606.

Utilities Regulatory Revenues

Alternative Revenue Programs

We recognize revenues from alternative revenue programs when the regulator-specified conditions for recognition have been met and adjust these revenues as they are recovered or refunded through future utility service.

Decoupled revenues. As discussed earlier, the regulatory framework requires the California Utilities to recover authorized revenue based on estimated annual demand forecasts approved in regular proceedings before the CPUC. However, actual demand for electricity and natural gas will generally vary from CPUC-approved forecasted demand due to the impacts from weather volatility, energy efficiency programs, rooftop solar and other factors affecting consumption. The CPUC regulatory framework provides for the California Utilities to use a “decoupling” mechanism, which allows the California Utilities to record revenue shortfalls or excess revenues resulting from any difference between actual and forecasted demand to be recovered or refunded in authorized revenue in a subsequent period based on the nature of the account.

Incentive mechanisms. The CPUC applies performance-based measures and incentive mechanisms to all California IOUs, under which the California Utilities have earnings potential above authorized base margins if they achieve or exceed specific performance and operating goals. Generally, for performance-based awards, if performance is above or below specific benchmarks, the utility is eligible for financial awards or subject to financial penalties.

Incentive awards are included in revenues when we receive required CPUC approval of the award, the timing of which may not be consistent from year to year. We would record penalties for results below the specified benchmarks against revenues when we believe it is probable that the CPUC would assess a penalty.

Other Cost-Based Regulatory Recovery

The CPUC authorizes the California Utilities to collect revenue requirements for costs that they have been authorized to recover from customers, including the costs to purchase electricity and natural gas; costs associated with administering public purpose, demand response, and customer energy efficiency programs; and other programmatic activities authorized as part of the GRC or separately from the GRC. Actual costs are recovered as the commodity or service is delivered or, to the extent actual amounts

vary from forecasts, generally recovered or refunded within a subsequent period based on the nature of the account through a balancing account mechanism. In general, the revenue recognition criteria for pass-through costs billed to customers are met at the time the costs are incurred.

Because SDG&E’s and SoCalGas’ cost of electricity and/or natural gas is substantially recovered in rates through a balancing account mechanism, changes in these costs are reflected in the changes in revenues, and therefore do not impact earnings.

The CPUC authorizes balancing accounts for certain programmatic activities. Amounts billed to customers, if any, are recorded in these accounts, as well as actual O&M and applicable capital-related costs (such as depreciation, taxes and ROE). Differences between actual and authorized expenditures are tracked and may be recovered or refunded within a GRC cycle or as part of a subsequent GRC request. Examples of these types of programs include, but are not limited to, gas distribution, gas transmission, and gas storage integrity management. The CPUC may impose various review procedures before authorizing recovery or refund for programs authorized separately from the GRC, including limitations on the total cost of the program, revenue requirement limits or reviews of costs for reasonableness. These procedures could result in disallowances of recovery from ratepayers. An example of a program with reasonableness review procedures is PSEP.

We discuss balancing accounts and their effects further in Note 4.

Other Revenues

Sempra LNG & Midstream has an agreement to supply LNG to Sempra Mexico’s ECA LNG terminal. Although the LNG sale and purchase agreement specifies a number of cargoes to be delivered annually, actual cargoes delivered by the supplier have traditionally been significantly lower than the maximum specified under the agreement. As a result, Sempra LNG & Midstream is contractually required to make monthly indemnity payments to Sempra Mexico for failure to deliver the contracted LNG.

Sempra Mexico generates lease revenues from operating lease agreements with PEMEX for the use of natural gas and ethane pipelines and LPG storage facilities. Certain PPAs at Sempra Renewables were also accounted for as operating leases prior to December 2018. Subsequent to the sale of its solar assets in December 2018, Sempra Renewables has one operating lease remaining, with a term of 15 years.

Sempra LNG & Midstream recognizes other revenues from:


▪	fees related to contractual counterparty obligations for non-delivery of LNG cargoes, as described above.

▪

sales of electricity and natural gas under short-term and long-term contracts and into the spot market and other competitive markets. Revenues include the net realized gains and losses on physical and derivative settlements and net unrealized gains and losses from the change in fair values of the derivatives.

Business Combinations

For substantially all other assets and liabilities, we determined that historical carrying value approximates fair value due to their short-term nature. 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 their respective fair values, with any excess recognized as goodwill at the Sempra Mexico reportable segment. None of the goodwill is expected to be deductible in Mexico or in the U.S. for income tax purposes.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 their respective fair values, with any excess recognized as goodwill at the Sempra South American Utilities reportable segment. None of the goodwill is expected to be deductible in Chile or in the U.S. for income tax purposes. 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 their respective fair values, with any excess recognized as goodwill at the Sempra Mexico reportable segment. None of the goodwill is expected to be deductible in Mexico or the U.S. for income tax purposes.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.Valuation of Ventika’s Assets and Liabilities. The fair values of the tangible and intangible assets acquired and liabilities assumed were recognized based on their preliminary values at the acquisition date. Significant inputs used to measure the fair values of the acquired PP&E, intangible asset, debt and derivatives are as follows:


▪	PP&E – We applied an income approach using market-based discounted cash flows. We used the pricing included in the existing PPAs, which was determined to reflect current market rates in the Mexican renewable energy market.

▪


▪	Debt – Using an income approach, we valued debt by discounting future debt payments by a market yield commensurate with the remaining term of the loans.


▪	Derivatives – Using an income approach, we valued derivatives by discounting the future interest payments under the fixed and floating rates using current market data.

Additionally, we recognized deferred income taxes on Ventika’s existing NOLs and the difference between the fair values and tax bases of the net assets acquired using the Mexican statutory rate.

For substantially all other assets and liabilities, we determined that historical carrying value approximates fair value due to their short-term nature.The fair value of the equity method investment in Oncor Holdings is primarily attributable to Oncor’s business. Therefore, we considered the underlying assets and liabilities of Oncor when determining the fair value of our equity method investment. As a regulated entity, Oncor’s rates are set and approved by the PUCT, and are designed to recover the cost of providing service and the opportunity to earn a reasonable return on its investments. Accordingly, Oncor applies the guidance under the provisions of U.S. GAAP governing rate-regulated operations. Under U.S. GAAP, regulation is viewed as being a characteristic (restriction) of a regulated entity’s assets and liabilities, and the impact of regulation is considered a fundamental input to measuring the fair value of Oncor’s assets and liabilities. Under this premise, we concluded that the carrying values of all assets and liabilities recoverable through rates are representative of their fair values.Valuation of CTNG’s Assets and Liabilities. The fair values of the tangible and intangible assets acquired and liabilities assumed were recognized based on their preliminary values at the acquisition date. Significant inputs used to measure the fair values of the acquired PP&E and intangible assets are as follows:


▪	PP&E - We applied an income approach using market-based discounted cash flows. We used discounted free cash flows on revenues established by the most recent regulatory rate case, which was determined to reflect the fair value of PP&E.

▪

Additionally, we recognized deferred income taxes on CTNG’s existing NOLs and for the difference between fair values and tax bases of the net assets acquired using the Chilean statutory tax rate.

For substantially all other assets and liabilities, we determined that historical carrying value approximates fair value due to their short-term nature.We consolidate assets acquired and liabilities assumed as of the purchase date and include earnings from acquisitions in consolidated earnings after the purchase date.We accounted for the Merger as an asset acquisition, as the equity method investment in Oncor Holdings represents substantially all of the fair value of the gross assets acquired.

Investments in Noncontrolling Interests

With the exception of RBS Sempra Commodities, discussed below, our foreign equity method investees are corporations whose

Employee Benefit Plans

EMPLOYEE BENEFIT PLANS

For our employee benefit plans, we:


▪	recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status in the statement of financial position;


▪	measure a plan’s assets and its obligations that determine its funded status as of the end of the fiscal year; and


▪	recognize changes in the funded status of pension and PBOP plans in the year in which the changes occur. Generally, those changes are reported in OCI and as a separate component of shareholders’ equity.

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

Benefit Obligation and Net Periodic Benefit Cost

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


▪	have an outstanding issue of at least $50 million;


▪	are non-callable (or callable with make-whole provisions);


▪	exclude collateralized bonds; and


▪	exclude the top and bottom 10 percent of yields to avoid relying on bonds that might be mispriced or misgraded.

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


▪	the issuer is on review for downgrade by a major rating agency if the downgrade would eliminate the issuer from the portfolio;


▪	recent events have caused significant price volatility to which rating agencies have not reacted; and


▪	lack of liquidity is causing price quotes to vary significantly from broker to broker.

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

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

Interest crediting rate is based on an average 30-year Treasury bond from the month of November of the preceding year.

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

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

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

Share-based Compensation

SEMPRA ENERGY RESTRICTED STOCK AWARDS AND UNITSWe use a Monte-Carlo simulation model to estimate the fair value of our RSAs and for our RSUs that vest based on Sempra Energy’s total return to shareholders. Our determination of fair value is affected by the historical volatility of the common stock price for Sempra Energy and its peer group companies. The valuation also is affected by the risk-free rates of return, and a number of other variables.Our practice is to satisfy share-based awards by issuing new shares rather than by open-market purchases.We measure and recognize compensation expense for all share-based payment awards made to our employees and directors based on estimated fair values on the date of grant. We recognize compensation costs net of an estimated forfeiture rate (based on historical experience) and recognize the compensation costs for non-qualified stock options, RSAs and RSUs on a straight-line basis over the requisite service period of the award, which is generally three or four years. However, for awards granted to retirement-eligible participants, the expense is recognized over the initial year in which the award was granted. For awards granted to participants who become eligible for retirement during the requisite service period, the expense is recognized over the period between the date of grant and the later of the end of the year in which the award was granted or the date the participant first becomes eligible for retirement. Substantially all awards outstanding are classified as equity instruments; therefore, we recognize additional paid in capital as we recognize the compensation expense associated with the awards.SEMPRA ENERGY NON-QUALIFIED STOCK OPTIONSWe use a Black-Scholes option-pricing model to estimate the fair value of each non-qualified stock option grant. The use of a valuation model requires us to make certain assumptions about selected model inputs. Expected volatility is calculated based on the historical volatility of Sempra Energy’s common stock price. We base the average expected life for options on the contractual term of the option and expected employee exercise and post-termination behavior. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term equal to the expected life assumed at the date of the grant.

Derivative Financial Instruments

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 and GHG allowances.FOREIGN CURRENCY DERIVATIVES

INTEREST RATE DERIVATIVES

Earnings Per Share

Basic EPS is calculated by dividing earnings attributable to common shares by the weighted-average common shares outstanding for the year. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.The potentially dilutive impact from stock options, RSAs and 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.

Environmental Costs

At the California Utilities, costs that relate to current operations or an existing condition caused by past operations are generally recorded as a regulatory asset due to the probability that these costs will be recovered in rates.The environmental issues currently facing us, except for those related to the Aliso Canyon natural gas storage facility leak as we discuss above or resolved during the last three years, include (1) investigation and remediation of the California Utilities’ manufactured-gas sites, (2) cleanup of third-party waste-disposal sites used by the California Utilities at sites for which we have been identified as a PRP and (3) mitigation of damage to the marine environment caused by the cooling-water discharge from SONGS.We generally capitalize the significant costs we incur to mitigate or prevent future environmental contamination or extend the life, increase the capacity, or improve the safety or efficiency of property used in current operations. The following table shows our capital expenditures (including construction work in progress) in order to comply with environmental laws and regulations:We record environmental liabilities at undiscounted amounts when our liability is probable and the costs can be reasonably estimated. In many cases, however, investigations are not yet at a stage where we can determine whether we are liable or, if the liability is probable, to reasonably estimate the amount or range of amounts of the costs. Estimates of our liability are further subject to uncertainties such as the nature and extent of site contamination, evolving cleanup standards and imprecise engineering evaluations. We review our accruals periodically and, as investigations and cleanups proceed, we make adjustments as necessary.

Concentration of Credit Risk

CONCENTRATION OF CREDIT RISK

Segment Reporting

We have seven separately managed reportable segments, as follows:


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


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


▪	Sempra Texas Utility holds our investment in Oncor Holdings, which owns an 80.25-percent interest in Oncor, a regulated electric transmission and distribution utility serving customers in the north-central, eastern and western parts of Texas. As we discuss in Note 5, we completed our acquisition of the investment in March 2018.


▪	Sempra South American Utilities develops, owns and operates, or holds interests in, electric transmission, distribution and generation infrastructure in Chile and Peru. In January 2019, our board of directors approved a plan to sell our South American businesses. We expect to complete the sales process by the end of 2019.


▪	Sempra Mexico develops, owns and operates, or holds interests in, natural gas, electric, LNG, LPG, ethane and liquid fuels infrastructure, and has marketing operations for the purchase of LNG and the purchase and sale of natural gas in Mexico.

▪

INCOME TAXES - NET OPERATING LOSSES AND TAX CREDIT CARRYFORWARDS (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Operating Loss Carryforwards [Line Items]
Valuation allowances	$ 164	$ 133
U.S. Federal [Member]
Operating Loss Carryforwards [Line Items]
NOLs	2,688
U.S. Federal [Member] \| General business tax credits [Member]
Operating Loss Carryforwards [Line Items]
Tax credits	417
U.S. Federal [Member] \| Foreign tax credits [Member]
Operating Loss Carryforwards [Line Items]
Tax credits	624
Valuation allowances	109	83
U.S. state [Member]
Operating Loss Carryforwards [Line Items]
NOLs	1,942
U.S. state [Member] \| General business tax credits [Member]
Operating Loss Carryforwards [Line Items]
Tax credits	82
U.S. state [Member] \| Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards [Member]
Operating Loss Carryforwards [Line Items]
Valuation allowances	35	30
Non-U.S. [Member]
Operating Loss Carryforwards [Line Items]
NOLs	264
Non-U.S. [Member] \| Deferred Tax Assets, Operating Loss Carryforwards [Member]
Operating Loss Carryforwards [Line Items]
Valuation allowances	$ 20	$ 20

QUARTERLY FINANCIAL DATA (UNAUDITED) - NARRATIVE (Details) - USD ($)

1 Months Ended

3 Months Ended

12 Months Ended

Dec. 31, 2018

Jun. 30, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Sep. 30, 2016

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

^[1]

Sep. 30, 2018

Significant Items Affecting Quarterly Results [Line Items]

Gain on sale of assets

$ 513,000,000

$ 524,000,000

$ 3,000,000

^[1]

$ 134,000,000

Gain on sale of assets, net of tax

367,000,000

Total increase in income tax expense due to tax cuts and jobs act

$ 870,000,000

85,000,000

870,000,000

Write-off of wildfire regulatory asset

351,000,000

^[1]

San Diego Gas and Electric Company [Member]

Significant Items Affecting Quarterly Results [Line Items]

Total increase in income tax expense due to tax cuts and jobs act

28,000,000

Write-off of wildfire regulatory asset

351,000,000

^[1]

$ 0

Termoelectrica de Mexicali [Member] | Sempra Mexico [Member]

Significant Items Affecting Quarterly Results [Line Items]

Other than temporary impairment in investment

$ 71,000,000

$ 131,000,000

Other than temporary impairment in investment, net of tax and noncontrolling interest

$ 47,000,000

Loss from Catastrophes [Member] | San Diego Gas and Electric Company [Member]

Significant Items Affecting Quarterly Results [Line Items]

Write-off of wildfire regulatory asset

$ 351,000,000

351,000,000

Write-off of wildfire regulatory asset net of tax

$ 208,000,000

Disposal Group Held-for-sale [Member]

Significant Items Affecting Quarterly Results [Line Items]

Asset impairment charges

$ (1,500,000,000)

Asset impairment charges, net of taxes and noncontrolling interests

(900,000,000)

Disposal Group Held-for-sale [Member] | Sempra LNG & Midstream [Member]

Significant Items Affecting Quarterly Results [Line Items]

Asset impairment charges

183,000,000

(1,300,000,000)

(1,100,000,000)

Asset impairment charges, net of taxes and noncontrolling interests

$ 126,000,000

(755,000,000)

$ (629,000,000)

Disposal Group Held-for-sale [Member] | Sempra Renewables [Member]

Significant Items Affecting Quarterly Results [Line Items]

Asset impairment charges

(200,000,000)

Asset impairment charges, net of taxes and noncontrolling interests

$ (145,000,000)

R B S Sempra Commodities [Member]

Significant Items Affecting Quarterly Results [Line Items]

Investment in RBS Sempra Commodities

$ 65,000,000

[1]	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1.

COMMITMENTS AND CONTINGENCIES - CAPITAL LEASES (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Capital leases, current portion	$ 15
Capital leases, noncurrent portion	1,255
Power Purchase Agreements [Member]
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2019	210
2020	210
2021	211
2022	211
2023	211
Thereafter	3,196
Total minimum payments	4,249
Less: estimated executory costs	(480)
Less: interest	(2,483)
Present value of net minimum lease payments	1,286
Power Purchase Agreement Upon Completion of Power Plant [Member]
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Present value of net minimum lease payments	$ 16
HQ Build To Suit Lease [Member]
Leases, Capital [Abstract]
Capital lease term	25 years
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2019	$ 10
2020	11
2021	11
2022	11
2023	11
Thereafter	217
Total minimum payments	271
Present value of net minimum lease payments	138
Fleet And Other Capital Leases [Member]
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2019	6
2020	2
2021	1
2022	0
2023	0
Thereafter	9
Present value of net minimum lease payments	11
Utility Fleet Leases [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
Capital lease depreciation expense	8	$ 3	$ 2
Infrastructure Construction And Improvements [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
Estimated payments	686
2019	396
2020	86
2021	43
2022	28
2023	18
Thereafter	115
Infrastructure Construction And Improvements [Member] \| SDG&E [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
Construction projects, payable	144
2019	43
2020	62
2021	22
2022	11
2023	2
Thereafter	4
Infrastructure Construction And Improvements [Member] \| Sempra South American Utilities [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
2019	14
Pipelines [Member] \| Sempra Mexico [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
Estimated payments	469
2019	287
2020	21
2021	18
2022	16
2023	16
Thereafter	111
Natural Gas Pipelines and Ongoing Maintenance Services [Member] \| Sempra Mexico [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
Estimated payments	266
Liquid Fuels Terminals [Member] \| Sempra Mexico [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
Estimated payments	94
Renewables Projects [Member] \| Sempra Mexico [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
Estimated payments	109
Infrastructure Improvements For Natural Gas And Electric Transmission And Distribution [Member] \| SDG&E [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
Construction projects, payable	135
Sempra Renewables Construction [Member] \| Sempra Renewables [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
Estimated payments	13
2019	6
2020	3
2021	3
2022	1
Sempra LNG & Midstream Construction [Member] \| Sempra LNG & Midstream [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
2019	46
San Diego Gas and Electric Company [Member]
Leases, Capital [Abstract]
Capital lease obligations	$ 1,272	732
San Diego Gas and Electric Company [Member] \| Power Purchase Agreements [Member]
Leases, Capital [Abstract]
Number of power purchase agreements with Peaker Facilities, capital leases	6
Number of power purchase agreements with Peaker Facilities, in commercial operation	1
Capital lease obligations	$ 1,270
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
Capital lease depreciation expense	$ 11	8	4
San Diego Gas and Electric Company [Member] \| Purchase Power Agreements With 25 Year Term [Member]
Leases, Capital [Abstract]
Number of power purchase agreements with Peaker Facilities, capital leases	4
Capital lease term	25 years
San Diego Gas and Electric Company [Member] \| Purchase Power Agreements With 20 Year Term [Member]
Leases, Capital [Abstract]
Number of power purchase agreements with Peaker Facilities, capital leases	1
Capital lease term	20 years
San Diego Gas and Electric Company [Member] \| Purchase Power Agreements With 9 Year Term [Member]
Leases, Capital [Abstract]
Number of power purchase agreements with Peaker Facilities, capital leases	1
Capital lease term	9 years
San Diego Gas and Electric Company [Member] \| Fleet And Other Capital Leases [Member]
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2019	$ 2
San Diego Gas and Electric Company [Member] \| Utility Fleet Leases [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
Capital lease depreciation expense	2	1	1
San Diego Gas and Electric Company [Member] \| Nuclear Plant Maintenance [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
Construction projects, payable	9
Southern California Gas Company [Member]
Leases, Capital [Abstract]
Capital lease obligations	3	1
Southern California Gas Company [Member] \| Fleet And Other Capital Leases [Member]
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2019	3
Southern California Gas Company [Member] \| Utility Fleet Leases [Member]
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract]
Capital lease depreciation expense	$ 6	$ 2	$ 1

SEMPRA ENERGY - SHAREHOLDERS' EQUITY AND EARNINGS PER SHARE - ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EPS (Details) - shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Stock options, RSAs and RSUs [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the computation of EPS	20,814	237,741	0
Convertible Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from the computation of EPS	17,197,035

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - CAPITALIZED FINANCING COSTS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Capitalized Financing Costs Disclosure [Line Items]
Total capitalized financing costs	$ 202	$ 256	$ 236
San Diego Gas and Electric Company [Member]
Capitalized Financing Costs Disclosure [Line Items]
Total capitalized financing costs	82	85	62
Southern California Gas Company [Member]
Capitalized Financing Costs Disclosure [Line Items]
Total capitalized financing costs	$ 48	$ 60	$ 55

QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Data [Abstract]

Quarterly Financial Data (Unaudited)

QUARTERLY FINANCIAL DATA (UNAUDITED)

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



SEMPRA ENERGY
(In millions, except per share amounts)
	Quarters ended
	March 31		June 30			September 30		December 31
2018:
Revenues	$	2,962	$	2,564		$	2,940	$	3,221
Expenses and other income	$	2,295	$	3,673		$	2,513	$	2,160

Net income (loss)	$	358	$	(530	)	$	334	$	964
Earnings (losses) attributable to common shares	$	347	$	(561	)	$	274	$	864

Basic per-share amounts⁽¹⁾:
Net income (loss)	$	1.39	$	(1.99	)	$	1.22	$	3.51
Earnings (losses) attributable to common shares	$	1.34	$	(2.11	)	$	1.00	$	3.15
Weighted-average common shares outstanding	257.9		265.8			273.9		274.3

Diluted per-share amounts⁽¹⁾⁽²⁾:
Net income (loss)	$	1.38	$	(1.99	)	$	1.21	$	3.25
Earnings (losses) attributable to common shares⁽³⁾	$	1.33	$	(2.11	)	$	0.99	$	3.03
Weighted-average common shares outstanding	259.5		265.8			275.9		296.4
2017:
Revenues	$	3,031	$	2,533		$	2,679	$	2,964
Expenses and other income⁽⁴⁾	$	2,279	$	2,136		$	2,674	$	2,567

Net income (loss)	$	452	$	248		$	102	$	(451	)
Earnings (losses) attributable to common shares	$	441	$	259		$	57	$	(501	)

Basic per-share amounts⁽¹⁾:
Net income (loss)	$	1.80	$	0.99		$	0.41	$	(1.80	)
Earnings (losses) attributable to common shares	$	1.76	$	1.03		$	0.23	$	(1.99	)
Weighted-average common shares outstanding	251.1		251.4			251.7		251.9

Diluted per-share amounts⁽¹⁾⁽²⁾:
Net income (loss)	$	1.79	$	0.98		$	0.41	$	(1.80	)
Earnings (losses) attributable to common shares	$	1.75	$	1.03		$	0.22	$	(1.99	)
Weighted-average common shares outstanding	252.2		252.8			253.4		251.9


⁽¹⁾	EPS is computed independently for each of the quarters and therefore may not sum to the total for the year.


⁽²⁾	In the quarters ended June 30, 2018 and December 31, 2017, the total weighted-average potentially dilutive securities were not included in the computation of losses per common share since to do so would have decreased the loss per share.


⁽³⁾	Due to the dilutive effect of the mandatory convertible preferred stock in the quarter ended December 31, 2018, the numerator used to calculate diluted EPS included an add-back of $36 million of mandatory convertible preferred stock dividends declared in that quarter.


⁽⁴⁾	Amount reflects a reclassification of equity earnings to conform to current year presentation, which we discuss in Note 1.

In June 2018, we recorded impairment charges totaling $1.5 billion ($900 million after tax and NCI), which included $1.3 billion ($755 million after tax and NCI) at Sempra LNG & Midstream and $200 million ($145 million after tax) at Sempra Renewables. In December 2018, we reduced the impairment charge at Sempra LNG & Midstream by $183 million ($126 million after tax and NCI). We discuss the impairments in Notes 5 and 12. In December 2018, we completed the sale of our U.S. operating solar assets, solar and battery storage development projects, as well as an interest in one wind facility, and recognized a pretax gain on sale of $513 million ($367 million after tax). We discuss the sale and related gain in Note 5.

In September 2018, we impaired our remaining equity method investment in RBS Sempra Commodities by recording a charge of $65 million in Equity Earnings. We discuss matters related to RBS Sempra Commodities further in Note 16.

In December 2017, Sempra Energy’s income tax expense included $870 million related to the impact of the TCJA, as we discuss in Note 8.

In September 2017, SDG&E recognized a charge of $351 million ($208 million after tax) for the write-off of its wildfire regulatory asset, which we discuss in Note 16.

In June 2017, Sempra Mexico recognized an impairment charge of $71 million ($47 million after NCI) related to assets that were previously held for sale at TdM. We discuss the impairment in Notes 5 and 12.



SDG&E
(Dollars in millions)
	Quarters ended
	March 31			June 30			September 30			December 31
2018:
Operating revenues	$	1,055		$	1,051		$	1,299		$	1,163
Operating expenses	807			836			999			916
Operating income	$	248		$	215		$	300		$	247

Net income	$	169		$	146		$	216		$	145
Losses (earnings) attributable to noncontrolling interest	1			—			(11		)	3
Earnings attributable to common shares	$	170		$	146		$	205		$	148
2017:
Operating revenues	$	1,057		$	1,058		$	1,236		$	1,125
Operating expenses⁽¹⁾	783			821			1,294			869
Operating income (loss)⁽¹⁾	$	274		$	237		$	(58	)	$	256

Net income (loss)	$	157		$	153		$	(19	)	$	130
(Earnings) losses attributable to noncontrolling interest	(2		)	(4		)	(9		)	1
Earnings (losses) attributable to common shares	$	155		$	149		$	(28	)	$	131


⁽¹⁾	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2.



SOCALGAS
(Dollars in millions)
	Quarters ended
	March 31		June 30			September 30			December 31
2018:
Operating revenues	$	1,126	$	772		$	802		$	1,262
Operating expenses	848		703			797			1,023
Operating income	$	278	$	69		$	5		$	239

Net income (loss)	$	225	$	34		$	(14	)	$	156
Dividends on preferred stock	—		(1		)	—			—
Earnings (losses) attributable to common shares	$	225	$	33		$	(14	)	$	156
2017:
Operating revenues	$	1,241	$	770		$	684		$	1,090
Operating expenses⁽¹⁾	929		690			679			860
Operating income⁽¹⁾	$	312	$	80		$	5		$	230

Net income	$	203	$	59		$	7		$	128
Dividends on preferred stock	—		(1		)	—			—
Earnings attributable to common shares	$	203	$	58		$	7		$	128


⁽¹⁾	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2.

SoCalGas recognizes annual authorized revenue for core natural gas customers using seasonal factors established in the Triennial Cost Allocation Proceeding. Accordingly, a significant portion of SoCalGas’ annual earnings are recognized in the first and fourth quarters each year.

DEBT AND CREDIT FACILITIES - SUMMARY OF LINES OF CREDIT (Details)	1 Months Ended	12 Months Ended
	Feb. 28, 2019 USD ($) lender	Dec. 31, 2018 USD ($) lender
Sempra Energy [Member]
Line of Credit Facility [Line Items]
Total facility		$ 1,250,000,000
Available unused credit		1,250,000,000
Committed lines of credit, capacity for issuance of letters of credit		$ 400,000,000
Committed lines of credit, maximum ratio of indebtedness to total capitalization		65.00%
Sempra Energy [Member] \| Commercial paper [Member]
Line of Credit Facility [Line Items]
Line of credit outstanding		$ 0
Sempra Global [Member]
Line of Credit Facility [Line Items]
Total facility		3,185,000,000
Available unused credit		2,516,000,000
Sempra Global [Member] \| Commercial paper [Member]
Line of Credit Facility [Line Items]
Line of credit outstanding		(669,000,000)
San Diego Gas and Electric Company [Member]
Line of Credit Facility [Line Items]
Total facility		750,000,000
Adjustment for combined limit		(6,000,000)
Available unused credit		$ 453,000,000
Committed lines of credit, maximum ratio of indebtedness to total capitalization		65.00%
San Diego Gas and Electric Company [Member] \| Commercial paper [Member]
Line of Credit Facility [Line Items]
Line of credit outstanding		$ (291,000,000)
Southern California Gas Company [Member]
Line of Credit Facility [Line Items]
Total facility		750,000,000
Adjustment for combined limit		(41,000,000)
Available unused credit		$ 453,000,000
Committed lines of credit, maximum ratio of indebtedness to total capitalization		65.00%
Southern California Gas Company [Member] \| Commercial paper [Member]
Line of Credit Facility [Line Items]
Line of credit outstanding		$ (256,000,000)
California Utilities [Member]
Line of Credit Facility [Line Items]
Total facility		1,000,000,000
Adjustment for combined limit		47,000,000
Available unused credit		453,000,000
Reduction in borrowing limit		(500,000,000)
Available unused credit limit reduction		(453,000,000)
Committed lines of credit, capacity for issuance of letters of credit		250,000,000
California Utilities [Member] \| Commercial paper [Member]
Line of Credit Facility [Line Items]
Line of credit outstanding		(547,000,000)
Reduction in borrowing limit		0
Sempra U.S. Businesses [Member]
Line of Credit Facility [Line Items]
Total facility		5,435,000,000
Available unused credit		$ 4,219,000,000
Committed lines of credit, term		5 years
Committed lines of credit, number of lenders \| lender		21
Lender maximum share of debt percent		7.00%
Sempra U.S. Businesses [Member] \| Commercial paper [Member]
Line of Credit Facility [Line Items]
Line of credit outstanding		$ (1,216,000,000)
Sempra South American Utilities [Member] \| Peru [Member]
Line of Credit Facility [Line Items]
Total facility		534,000,000
Line of credit outstanding		(182,000,000)
Available unused credit		$ 352,000,000
Committed lines of credit, maximum debt to equity ratio		170.00%
Committed lines of credit, bank guarantee		$ 18,000,000
Sempra South American Utilities [Member] \| Chile [Member]
Line of Credit Facility [Line Items]
Total facility		115,000,000
Line of credit outstanding		0
Available unused credit		115,000,000
Sempra Mexico [Member]
Line of Credit Facility [Line Items]
Total facility		1,170,000,000
Line of credit outstanding		(808,000,000)
Available unused credit		$ 362,000,000
Committed lines of credit, term		5 years
Committed lines of credit, number of lenders \| lender		8
South American Utilities and Mexico Combined [Member]
Line of Credit Facility [Line Items]
Total facility		$ 1,819,000,000
Line of credit outstanding		(990,000,000)
Available unused credit		$ 829,000,000
Subsequent Event [Member] \| Sempra Mexico [Member]
Line of Credit Facility [Line Items]
Total facility	$ 1,500,000,000
Committed lines of credit, number of lenders \| lender	10

FAIR VALUE MEASUREMENTS - NONRECURRING FAIR VALUE MEASURES (Details)			1 Months Ended				3 Months Ended		9 Months Ended	12 Months Ended
	Jun. 25, 2018 USD ($)	Sep. 26, 2016 USD ($)	Dec. 31, 2018 USD ($)	Jun. 30, 2018 USD ($)	May 31, 2016 USD ($)	Mar. 31, 2016 USD ($)	Jun. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2016 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Feb. 07, 2019 USD ($)	Feb. 06, 2019 USD ($)	Jan. 01, 2019 USD ($)	Sep. 26, 2018	Sep. 29, 2016 USD ($)	May 09, 2016	Mar. 29, 2016 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Remeasurement of equity method investment										$ 0	$ 0	$ 617,000,000
Equity method investment			$ 9,652,000,000							9,652,000,000	$ 0
Valuation, Market Approach [Member] \| Non-utility Natural gas Storage Assets [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of investment			$ 337,000,000							$ 337,000,000
% of fair value measurement			100.00%							100.00%
Range of inputs			100.00%							100.00%
Valuation, Market Approach [Member] \| Non-utility Natural gas Storage Assets [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs	10.00%
Valuation, Market Approach [Member] \| IEnova Pipelines [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Ownership percentage in equity method investee																100.00%
Fair value of investment		$ 1,144,000,000
% of fair value measurement		100.00%
Range of inputs		100.00%
Valuation, Market Approach [Member] \| TdM [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of investment							$ 62,000,000										$ 145,000,000
% of fair value measurement							100.00%										100.00%
Range of inputs							100.00%										100.00%
Valuation, Market Approach [Member] \| Rockies Express [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of investment																			$ 440,000,000
% of fair value measurement																			100.00%
Range of inputs																			100.00%
Valuation Technique, Discounted Cash Flow [Member] \| Non-utility Natural gas Storage Assets [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of investment	$ 190,000,000
% of fair value measurement	100.00%
Valuation Technique, Discounted Cash Flow [Member] \| Certain U.S. Wind Equity Method Investments [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of investment	$ 145,000,000
% of fair value measurement	100.00%
Sempra Mexico [Member] \| IEnova Pipelines [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Acquired percentage interest		50.00%
Ownership percentage in equity method investee		100.00%
Remeasurement of equity method investment		$ 617,000,000
Gain on acquisition of remaining voting rights, net of tax		432,000,000
Fair value of investment		1,144,000,000
Equity method investment		520,000,000
Reclassification adjustment from AOCI		(7,000,000)
Fair value of business combination		$ 2,288,000,000
Sempra Mexico [Member] \| TdM [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other than temporary impairment in investment							$ 71,000,000	$ 131,000,000
Other than temporary impairment in investment, net of tax								$ 111,000,000
Sempra Renewables [Member] \| Wind Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity method investment			$ 291,000,000							$ 291,000,000
Other than temporary impairment										200,000,000
Sempra Renewables [Member] \| Wind Investments [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity method investment			139,000,000							139,000,000
Sempra LNG & Midstream [Member] \| Rockies Express [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other than temporary impairment in investment						$ 44,000,000			$ 44,000,000
Other than temporary impairment in investment, net of tax						$ 27,000,000			$ 27,000,000
Ownership percentage in equity method investee					25.00%	25.00%												25.00%	25.00%
Fair value of investment						$ 440,000,000
Equity method investment						484,000,000
Proceeds from sale of investments					$ 443,000,000	$ 440,000,000
Disposal Group Held-for-sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset impairment charges, net of taxes and noncontrolling interests				$ (900,000,000)
Assets, fair value disclosure	$ 145,000,000
Asset impairment charges				(1,500,000,000)
Disposal Group Held-for-sale [Member] \| Sempra Renewables [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset impairment charges, net of taxes and noncontrolling interests				(145,000,000)
Asset impairment charges				(200,000,000)
Disposal Group Held-for-sale [Member] \| Sempra Renewables [Member] \| Wind Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other than temporary impairment										200,000,000
Asset impairment charges, net of taxes and noncontrolling interests										(145,000,000)
Disposal Group Held-for-sale [Member] \| Sempra LNG & Midstream [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset impairment charges, net of taxes and noncontrolling interests			126,000,000	(755,000,000)						(629,000,000)
Asset impairment charges			183,000,000	$ (1,300,000,000)						(1,100,000,000)
Proceeds from sale			5,000,000							5,000,000
Disposal Group Held-for-sale [Member] \| Sempra LNG & Midstream [Member] \| Non-utility Natural gas Storage Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset impairment charges, net of taxes and noncontrolling interests	(755,000,000)
Asset impairment charges	$ (1,300,000,000)
Assets held for sale			336,000,000							336,000,000
Bay Gas [Member] \| Disposal Group Held-for-sale [Member] \| Sempra LNG & Midstream [Member] \| Non-utility Natural gas Storage Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Ownership interest	90.90%
LA Storage [Member] \| Disposal Group Held-for-sale [Member] \| Sempra LNG & Midstream [Member] \| Non-utility Natural gas Storage Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Ownership interest	75.40%
Sempra LNG & Midstream [Member] \| Disposal Group Disposed of by Sale [Member] \| Mississippi Hub And Bay Gas [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets held for sale			323,000,000							323,000,000
Fair Value, Measurements, Nonrecurring [Member] \| Disposal Group Held-for-sale [Member] \| Sempra LNG & Midstream [Member] \| Non-utility Natural gas Storage Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets held for sale			$ 337,000,000							$ 337,000,000
Fair Value, Measurements, Nonrecurring [Member] \| Disposal Group Held-for-sale [Member] \| Sempra LNG & Midstream [Member] \| Non-utility Natural gas Storage Assets [Member] \| Valuation Technique, Discounted Cash Flow [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	$ 190,000,000
Subsequent Event [Member] \| Sempra LNG & Midstream [Member] \| Bay Gas [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Ownership percentage in equity method investee														9.10%
Equity method investment														$ 20,000,000
Subsequent Event [Member] \| Sempra LNG & Midstream [Member] \| Disposal Group Disposed of by Sale [Member] \| Mississippi Hub And Bay Gas [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Proceeds from sale													$ 328,000,000		$ 332,000,000
Measurement Input, Commodity Market Price [Member] \| Minimum [Member] \| Fair Value, Measurements, Nonrecurring [Member] \| Disposal Group Held-for-sale [Member] \| Sempra Renewables [Member] \| Wind Generation Projects [Member] \| Valuation Technique, Discounted Cash Flow [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, measurement input	29
Measurement Input, Commodity Market Price [Member] \| Maximum [Member] \| Fair Value, Measurements, Nonrecurring [Member] \| Disposal Group Held-for-sale [Member] \| Sempra Renewables [Member] \| Wind Generation Projects [Member] \| Valuation Technique, Discounted Cash Flow [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, measurement input	92
Measurement Input, Storage Rate [Member] \| Minimum [Member] \| Fair Value, Measurements, Nonrecurring [Member] \| Disposal Group Held-for-sale [Member] \| Sempra LNG & Midstream [Member] \| Non-utility Natural gas Storage Assets [Member] \| Valuation Technique, Discounted Cash Flow [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, measurement input	0.06
Measurement Input, Storage Rate [Member] \| Maximum [Member] \| Fair Value, Measurements, Nonrecurring [Member] \| Disposal Group Held-for-sale [Member] \| Sempra LNG & Midstream [Member] \| Non-utility Natural gas Storage Assets [Member] \| Valuation Technique, Discounted Cash Flow [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, measurement input	0.22
Measurement Input, Discount Rate [Member] \| Minimum [Member] \| Fair Value, Measurements, Nonrecurring [Member] \| Disposal Group Held-for-sale [Member] \| Sempra Renewables [Member] \| Wind Generation Projects [Member] \| Valuation Technique, Discounted Cash Flow [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs	8.00%
Measurement Input, Discount Rate [Member] \| Maximum [Member] \| Fair Value, Measurements, Nonrecurring [Member] \| Disposal Group Held-for-sale [Member] \| Sempra Renewables [Member] \| Wind Generation Projects [Member] \| Valuation Technique, Discounted Cash Flow [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs	10.00%
Measurement Input, Discount Rate [Member] \| Weighted Average [Member] \| Fair Value, Measurements, Nonrecurring [Member] \| Disposal Group Held-for-sale [Member] \| Sempra Renewables [Member] \| Wind Generation Projects [Member] \| Valuation Technique, Discounted Cash Flow [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs	8.70%
Measurement Input, Discount Rate [Member] \| Weighted Average [Member] \| Fair Value, Measurements, Nonrecurring [Member] \| Disposal Group Held-for-sale [Member] \| Sempra LNG & Midstream [Member] \| Non-utility Natural gas Storage Assets [Member] \| Valuation Technique, Discounted Cash Flow [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range of inputs	10.00%

CONSOLIDATED STATEMENTS OF CASH FLOWS
$ in Millions

12 Months Ended

Dec. 31, 2018

USD ($)

Dec. 31, 2017

USD ($)

Dec. 31, 2016

USD ($)

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$ 1,126

$ 351

^[1]

$ 1,519

^[1]

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

Depreciation and amortization

1,549

1,490

^[1]

1,312

^[1]

Deferred income taxes and investment tax credits

(182)

1,160

217

Write-off of wildfire regulatory asset

351

^[1]

Impairment losses

1,122

^[1]

153

^[1]

Gain on sale of assets

(524)

(3)

(134)

Remeasurement of equity method investment

(617)

Equity earnings, net

(176)

(76)

(84)

Share-based compensation expense

Fixed-price contracts and other derivatives

(10)

Other

315

Net change in other working capital components

173

(59)

Insurance receivable for Aliso Canyon costs

(43)

188

(281)

Changes in other noncurrent assets and liabilities, net

(121)

202

Changes in working capital components:

Accounts receivable

(144)

(42)

Income taxes receivable, net

(70)

Inventories

(49)

(20)

Regulatory balancing accounts

263

108

198

Other current assets

(81)

(12)

(41)

Accounts payable

122

Reserve for Aliso Canyon costs

(221)

Other current liabilities

(119)

(51)

(58)

Net cash provided by operating activities

3,447

3,625

2,311

CASH FLOWS FROM INVESTING ACTIVITIES

Expenditures for property, plant and equipment

(3,784)

(3,949)

(4,214)

Expenditures for investments and acquisitions, net of cash, cash equivalents and restricted cash acquired

(10,376)

(270)

(1,504)

Proceeds from sale of assets, net of cash and restricted cash sold

1,593

763

Distributions from investments

Purchases of nuclear decommissioning trust assets

(890)

(1,314)

(1,034)

Proceeds from sales by nuclear decommissioning trust assets

890

1,314

1,134

Advances to unconsolidated affiliates

(102)

(531)

(25)

Repayments of advances to unconsolidated affiliates

Other

(2)

Net cash used in investing activities

(12,557)

(4,700)

(4,835)

CASH FLOWS FROM FINANCING ACTIVITIES

Common dividends paid

(877)

(755)

(686)

Preferred dividends paid

(89)

Preferred dividends paid by subsidiary

Issuances of mandatory convertible preferred stock, net of $42 in offering costs in 2018

2,258

Issuances of common stock, net of $41 in offering costs in 2018

2,272

Repurchases of common stock

(21)

(15)

(56)

Issuances of debt (maturities greater than 90 days)

9,174

4,509

2,951

Payments on debt (maturities greater than 90 days)

(3,510)

(2,800)

(2,057)

(Decrease) increase in short-term debt, net

(124)

(36)

692

Advances from unconsolidated affiliates

Proceeds from sale of noncontrolling interests, net of $1, $3 and $40 in offering costs, respectively

196

1,692

Net distributions to noncontrolling interests

(43)

(130)

(63)

Settlement of cross-currency swaps

(33)

Other

(90)

(43)

(21)

Net cash provided by financing activities

9,006

1,007

2,502

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(14)

(3)

Decrease in cash, cash equivalents and restricted cash

(118)

(61)

(25)

Cash, cash equivalents and restricted cash, January 1

364

425

450

Cash, cash equivalents and restricted cash, December 31

246

364

425

Cash and cash equivalents, January 1

288

Cash and cash equivalents, December 31

190

288

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Interest payments, net of amounts capitalized

812

619

532

Income tax payments (refunds), net

174

172

160

Noncash acquisition of businesses:

Assets acquired, net of cash, cash equivalents and restricted cash

9,921

436

3,808

Value of equity method investment immediately prior to acquisition

(28)

(1,144)

Liabilities assumed

(145)

(261)

(1,322)

Cash paid, net of cash, cash equivalents and restricted cash acquired

9,776

147

1,342

Other Noncash Investing and Financing Items [Abstract]

Accrued capital expenditures

459

562

626

Increase in capital lease obligations for investment in property, plant and equipment

558

504

Accrued Merger-related transaction costs

Equitization of note receivable due from unconsolidated affiliate

Common dividends issued in stock

San Diego Gas and Electric Company [Member]

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

676

421

^[1]

565

^[1]

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

Depreciation and amortization

688

670

^[1]

646

^[1]

Deferred income taxes and investment tax credits

(10)

258

Write-off of wildfire regulatory asset

351

^[1]

Fixed-price contracts and other derivatives

(3)

(2)

(3)

Other

(14)

(22)

(35)

Changes in other noncurrent assets and liabilities, net

(30)

(9)

Changes in working capital components:

Accounts receivable

(76)

(31)

Due to/from affiliates, net

(2)

(10)

(19)

Inventories

(25)

(5)

Regulatory balancing accounts

138

Other current assets

(6)

Income taxes

136

(115)

Accounts payable

(1)

Other current liabilities

(28)

Net cash provided by operating activities

1,584

1,547

1,323

CASH FLOWS FROM INVESTING ACTIVITIES

Expenditures for property, plant and equipment

(1,542)

(1,555)

(1,399)

Purchases of nuclear decommissioning trust assets

(890)

(1,314)

(1,034)

Proceeds from sales by nuclear decommissioning trusts

890

1,314

1,134

Decrease (increase) in loans to affiliate, net

(31)

Other

Net cash used in investing activities

(1,542)

(1,515)

(1,324)

CASH FLOWS FROM FINANCING ACTIVITIES

Common dividends paid

(250)

(450)

(175)

Issuances of debt (maturities greater than 90 days)

618

398

498

Payments on debt (maturities greater than 90 days)

(492)

(186)

(204)

(Decrease) increase in short-term debt, net

253

(114)

Net distributions to noncontrolling interests

(34)

(21)

Debt issuance costs

(5)

(4)

(6)

Net cash provided by financing activities

(34)

(23)

(22)

Increase (decrease) in cash, cash equivalents and restricted cash

(23)

Cash, cash equivalents and restricted cash, January 1

Cash, cash equivalents and restricted cash, December 31

Cash and cash equivalents, January 1

Cash and cash equivalents, December 31

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Interest payments, net of amounts capitalized

214

195

187

Income tax payments (refunds), net

112

137

Other Noncash Investing and Financing Items [Abstract]

Accrued capital expenditures

159

217

227

Increase in capital lease obligations for investment in property, plant and equipment

550

500

Southern California Gas Company [Member]

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

401

397

^[1]

350

^[1]

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

Depreciation and amortization

556

515

^[1]

476

^[1]

Deferred income taxes and investment tax credits

137

103

Impairment losses

^[1]

Other

(7)

(26)

Insurance receivable for Aliso Canyon costs

(43)

188

(281)

Changes in other noncurrent assets and liabilities, net

(144)

(93)

Changes in working capital components:

Accounts receivable

(87)

Due to/from affiliates, net

(10)

Inventories

(2)

(66)

Regulatory balancing accounts

125

163

Other current assets

(13)

Income taxes

(5)

(2)

Accounts payable

Reserve for Aliso Canyon costs

(221)

Other current liabilities

(6)

(25)

Net cash provided by operating activities

1,013

1,306

671

CASH FLOWS FROM INVESTING ACTIVITIES

Expenditures for property, plant and equipment

(1,538)

(1,367)

(1,319)

Decrease (increase) in loans to affiliate, net

Other

Net cash used in investing activities

(1,531)

(1,363)

(1,269)

CASH FLOWS FROM FINANCING ACTIVITIES

Common dividends paid

(50)

Preferred dividends paid

(1)

Issuances of debt (maturities greater than 90 days)

949

499

Payments on debt (maturities greater than 90 days)

(500)

(3)

(Decrease) increase in short-term debt, net

140

Debt issuance costs

(10)

(5)

Net cash provided by financing activities

528

552

Increase (decrease) in cash and cash equivalents

(4)

(46)

Cash and cash equivalents, January 1

Cash and cash equivalents, December 31

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Interest payments, net of amounts capitalized

105

Income tax payments (refunds), net

Other Noncash Investing and Financing Items [Abstract]

Accrued capital expenditures

191

208

207

Preferred Stock [Member]

Other Noncash Investing and Financing Items [Abstract]

Dividends declared but not paid

Common Stock [Member]

Other Noncash Investing and Financing Items [Abstract]

Dividends declared but not paid

245

207

189

Non-controlling interests [Member]

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

148

Other Noncash Investing and Financing Items [Abstract]

Dividends declared but not paid

Non-controlling interests [Member] | San Diego Gas and Electric Company [Member]

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$ 7

$ 14

$ (5)

[1]	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1.

SAN ONOFRE NUCLEAR GENERATING STATION (SONGS) - NARRATIVE (Details) - USD ($) $ in Millions		1 Months Ended	12 Months Ended
	Mar. 13, 2017	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2017	Dec. 19, 2017	Feb. 28, 2017
Jointly Owned Utility Plant Interests [Line Items]
Litigation settlement payable	$ 118
Percent of arbitration expenses awarded	95.00%
Settlement payable net of arbitration expense	$ 60
Regulatory asset, current			$ 138			$ 325
Regulatory asset, noncurrent			$ 1,589			1,517
Period of environmental exit			10 years
San Diego Gas and Electric Company [Member]
Jointly Owned Utility Plant Interests [Line Items]
Litigation settlement payable	24
Settlement payable net of arbitration expense	12
Arbitration expense	12
Legal fees	11
Litigation settlement amount allocated to ratepayers and shareholders	$ 1
Regulatory asset threshold to cease rate recovery							$ 152
Regulatory asset, current			$ 123			316
Regulatory asset, noncurrent			$ 454			$ 451
Percentage of environmental exit costs incurred			20.00%
SONGS mitigation costs remaining			$ 23
Nuclear decommissioning trust authorized withdrawal amount			455					$ 93
San Diego Gas and Electric Company [Member] \| Nuclear Plant Closure [Member]
Jointly Owned Utility Plant Interests [Line Items]
Regulatory asset threshold to cease rate recovery							$ 775
Receivable for nuclear plant closure			124
Regulatory asset, current			40
Regulatory asset, noncurrent			$ 84
San Diego Gas and Electric Company [Member] \| San Onofre Nuclear Generating Station (SONGS) [Member]
Jointly Owned Utility Plant Interests [Line Items]
Ownership percentage			20.00%
SONGS 1 Decommissioning [Member]
Jointly Owned Utility Plant Interests [Line Items]
SONGS mitigation costs remaining		$ 207
SONGS 1 Decommissioning [Member] \| San Diego Gas and Electric Company [Member]
Jointly Owned Utility Plant Interests [Line Items]
SONGS mitigation costs remaining		41
Environmental exit costs deemed reasonable		3
SONGS 2 and 3 Decommissioning [Member]
Jointly Owned Utility Plant Interests [Line Items]
SONGS mitigation costs remaining		3,200
Environmental exit costs deemed reasonable				$ 222	$ 136
SONGS 2 and 3 Decommissioning [Member] \| San Diego Gas and Electric Company [Member]
Jointly Owned Utility Plant Interests [Line Items]
SONGS mitigation costs remaining		638
Environmental exit costs deemed reasonable		$ 43

SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2018

Share-based Compensation [Abstract]

Schedule Of Share-based Compensation Expense

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



SHARE-BASED COMPENSATION EXPENSE
(Dollars in millions)
	Years ended December 31,
	2018			2017			2016
Sempra Energy Consolidated:
Share-based compensation expense, before income taxes	$	76		$	78		$	46
Income tax benefit	(21		)	(31		)	(18		)
	$	55		$	47		$	28

Capitalized share-based compensation cost	$	10		$	9		$	7
Excess income tax deficiency (benefit)	$	15		$	—		$	(34	)
SDG&E:
Share-based compensation expense, before income taxes	$	12		$	13		$	7
Income tax benefit	(3		)	(5		)	(3		)
	$	9		$	8		$	4

Capitalized share-based compensation cost	$	6		$	5		$	4
Excess income tax deficiency (benefit)	$	3		$	—		$	(7	)
SoCalGas:
Share-based compensation expense, before income taxes	$	16		$	17		$	8
Income tax benefit	(5		)	(7		)	(3		)
	$	11		$	10		$	5

Capitalized share-based compensation cost	$	4		$	4		$	3
Excess income tax deficiency (benefit)	$	2		$	—		$	(4	)

Schedule Of Non-qualified Stock Options

The following table shows a summary of non-qualified stock options at December 31, 2018 and activity for the year then ended:



NON-QUALIFIED STOCK OPTIONS

	Common shares under option		Weighted- average exercise price		Weighted- average remaining contractual term (in years)	Aggregate intrinsic value (in millions)
Outstanding at January 1, 2018	195,801		$	50.30
Exercised	(138,861	)	$	48.53
Outstanding at December 31, 2018	56,940		$	54.63	0.9	$	3

Vested at December 31, 2018	56,940		$	54.63	0.9	$	3
Exercisable at December 31, 2018	56,940		$	54.63	0.9	$	3

Schedule Of Restricted Stock Awards And Units Valuation Assumptions

Below are key assumptions for Sempra Energy awards granted in the last three years:



KEY ASSUMPTIONS FOR AWARDS GRANTED

	Years ended December 31,
	2018		2017		2016
Risk-free rate of return	2.0	%	1.5	%	1.3	%
Stock price volatility	17		17		16

Schedule Of Restricted Stock Units

We provide below a summary of Sempra Energy’s RSUs as of December 31, 2018 and the activity during the year.



RESTRICTED STOCK UNITS

	Performance-based restricted stock units				Service-based restricted stock units
	Units		Weighted- average grant-date fair value		Units		Weighted- average grant-date fair value
Nonvested at January 1, 2018	1,701,617		$	105.84	285,895		$	98.81
Granted	358,363		$	105.03	288,474		$	107.60
Vested	(157,745	)	$	99.42	(163,609	)	$	100.60
Forfeited	(660,066	)	$	106.45	(8,399	)	$	103.32
Nonvested at December 31, 2018⁽¹⁾	1,242,169		$	106.11	402,361		$	105.01
Expected to vest at December 31, 2018	1,211,529		$	105.47	396,358		$	104.26

⁽¹⁾

Each RSU represents the right to receive one share of our common stock if applicable performance conditions are satisfied. For all performance-based RSUs, except for those issued in connection with the creation of Cameron LNG JV, up to an additional 100 percent of the shares represented by the RSUs may be issued if Sempra Energy exceeds target performance conditions.

COMMITMENTS AND CONTINGENCIES - SITE CONTINGENCY (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)
Site Contingency [Line Items]
Accrual for environmental loss contingencies	$ 37
Accrual for environmental loss contingencies, current	10
Accrual for environmental loss contingencies, noncurrent	27
Manufactured Gas Sites [Member]
Site Contingency [Line Items]
Accrual for environmental loss contingencies	30
Waste Disposal Sites [Member]
Site Contingency [Line Items]
Accrual for environmental loss contingencies	4
Other Hazardous Waste Sites [Member]
Site Contingency [Line Items]
Accrual for environmental loss contingencies	3
San Diego Gas and Electric Company [Member]
Site Contingency [Line Items]
Accrual for environmental loss contingencies	5
Accrual for environmental loss contingencies, current	1
Accrual for environmental loss contingencies, noncurrent	4
Estimated SONGS mitigation costs, recoverable in rates	68
SONGS mitigation costs incurred	45
SONGS mitigation costs remaining	$ 23
San Diego Gas and Electric Company [Member] \| Manufactured Gas Sites [Member]
Site Contingency [Line Items]
Site Contingency, Sites Completed	3
Site Contingency, Sites In Process	0
Accrual for environmental loss contingencies	$ 0
San Diego Gas and Electric Company [Member] \| Waste Disposal Sites [Member]
Site Contingency [Line Items]
Site Contingency, Sites Completed	2
Site Contingency, Sites In Process	1
Accrual for environmental loss contingencies	$ 2
San Diego Gas and Electric Company [Member] \| Other Hazardous Waste Sites [Member]
Site Contingency [Line Items]
Accrual for environmental loss contingencies	3
San Diego Gas and Electric Company [Member] \| California Coastal Reef Expansion [Member]
Site Contingency [Line Items]
SONGS mitigation costs remaining	4
Southern California Gas Company [Member]
Site Contingency [Line Items]
Accrual for environmental loss contingencies	31
Accrual for environmental loss contingencies, current	9
Accrual for environmental loss contingencies, noncurrent	$ 22
Southern California Gas Company [Member] \| Manufactured Gas Sites [Member]
Site Contingency [Line Items]
Site Contingency, Sites Completed	39
Site Contingency, Sites In Process	3
Accrual for environmental loss contingencies	$ 30
Southern California Gas Company [Member] \| Waste Disposal Sites [Member]
Site Contingency [Line Items]
Site Contingency, Sites Completed	5
Site Contingency, Sites In Process	2
Accrual for environmental loss contingencies	$ 1
Southern California Gas Company [Member] \| Other Hazardous Waste Sites [Member]
Site Contingency [Line Items]
Accrual for environmental loss contingencies	0
Other Sempra Energy [Member]
Site Contingency [Line Items]
Accrual for environmental loss contingencies	1
Other Sempra Energy [Member] \| Manufactured Gas Sites [Member]
Site Contingency [Line Items]
Accrual for environmental loss contingencies	0
Other Sempra Energy [Member] \| Waste Disposal Sites [Member]
Site Contingency [Line Items]
Accrual for environmental loss contingencies	1
Other Sempra Energy [Member] \| Other Hazardous Waste Sites [Member]
Site Contingency [Line Items]
Accrual for environmental loss contingencies	$ 0

EMPLOYEE BENEFIT PLANS - EMPLOYEE BENEFIT PLANS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Liability, Defined Benefit Plan [Abstract]
Noncurrent liabilities	$ (1,161,000,000)	$ (1,148,000,000)
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Expected return on plan assets	7.00%
Pension Plan [Member]
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Beginning balance	$ 3,857,000,000	3,679,000,000
Service cost	124,000,000	117,000,000	$ 107,000,000
Interest cost	141,000,000	151,000,000	160,000,000
Contributions from plan participants	0	0
Actuarial (gain) loss	(269,000,000)	286,000,000
Plan amendments	12,000,000	1,000,000
Benefit payments	(115,000,000)	(182,000,000)
Special termination benefits	0	0
Acquisition	0	0
Curtailments	0	(1,000,000)
Settlements	(394,000,000)	(194,000,000)	(75,000,000)
Ending balance	3,356,000,000	3,857,000,000	3,679,000,000
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Actual return on plan assets	(180,000,000)	421,000,000
Employer contributions	190,000,000	155,000,000
Contributions from plan participants	0	0
Benefit payments	(115,000,000)	(182,000,000)
Settlements	(394,000,000)	(194,000,000)
Ending balance	2,160,000,000	2,659,000,000	2,459,000,000
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract]
Funded status	(1,196,000,000)	(1,198,000,000)
Net recorded (liability) asset at December 31	(1,196,000,000)	(1,198,000,000)
Liability, Defined Benefit Plan [Abstract]
Noncurrent assets	0	0
Current liabilities	(65,000,000)	(69,000,000)
Noncurrent liabilities	(1,131,000,000)	(1,129,000,000)
Net recorded (liability) asset	(1,196,000,000)	(1,198,000,000)
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax [Abstract]
Net actuarial (loss) gain	(114,000,000)	(84,000,000)
Prior service cost	(12,000,000)	(4,000,000)
Total	(126,000,000)	(88,000,000)
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract]
Projected benefit obligation	3,130,000,000	3,623,000,000
Accumulated benefit obligation	2,894,000,000	3,334,000,000
Fair value of plan assets	2,160,000,000	2,659,000,000
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost	124,000,000	117,000,000	107,000,000
Interest cost	141,000,000	151,000,000	160,000,000
Expected return on assets	(157,000,000)	(161,000,000)	(166,000,000)
Amortization of Prior service cost (credit)	11,000,000	11,000,000	11,000,000
Amortization of actuarial loss (gain)	23,000,000	36,000,000	30,000,000
Settlement charges	66,000,000	38,000,000	16,000,000
Special termination benefits	0	0	0
Net periodic benefit cost	208,000,000	192,000,000	158,000,000
Regulatory adjustment	(30,000,000)	(42,000,000)	(57,000,000)
Total expense recognized	178,000,000	150,000,000	101,000,000
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax [Abstract]
Net loss (gain)	56,000,000	0	26,000,000
Prior service cost	12,000,000	1,000,000	0
Amortization of actuarial loss	(12,000,000)	(10,000,000)	(10,000,000)
Amortization of prior service cost	(2,000,000)	(1,000,000)	(1,000,000)
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), before Tax	(12,000,000)	(8,000,000)	0
Total recognized in OCI	42,000,000	(18,000,000)	15,000,000
Total recognized in net periodic benefit cost and OCI	$ 220,000,000	$ 132,000,000	$ 116,000,000
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Discount rate	4.30%	3.65%
Interest crediting rate	3.36%	2.80%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Discount rate	3.65%	4.08%	4.46%
Expected return on plan assets	7.00%	7.00%	7.00%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Interest Crediting Rate	2.80%	2.86%	3.03%
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract]
Expected employer contributions	$ 228,000,000
Defined Benefit Plan, Expected Future Benefit Payment [Abstract]
2019	416,000,000
2020	270,000,000
2021	268,000,000
2022	246,000,000
2023	236,000,000
2024-2028	$ 1,097,000,000
Pension Plan [Member] \| Maximum [Member]
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Rate of compensation increase	10.00%	10.00%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Rate of compensation increase	10.00%	10.00%	10.00%
Pension Plan [Member] \| Minimum [Member]
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Rate of compensation increase	2.00%	2.00%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Rate of compensation increase	2.00%	2.00%	2.00%
Other Postretirement Benefits Plan [Member]
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Beginning balance	$ 963,000,000	$ 922,000,000
Service cost	21,000,000	21,000,000	$ 20,000,000
Interest cost	36,000,000	39,000,000	42,000,000
Contributions from plan participants	23,000,000	20,000,000
Actuarial (gain) loss	(123,000,000)	6,000,000
Plan amendments	0	0
Benefit payments	(74,000,000)	(63,000,000)
Special termination benefits	5,000,000	18,000,000	26,000,000
Acquisition	21,000,000	0
Curtailments	0	0
Settlements	0	0
Ending balance	872,000,000	963,000,000	922,000,000
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Actual return on plan assets	(56,000,000)	185,000,000
Employer contributions	6,000,000	10,000,000
Contributions from plan participants	23,000,000	20,000,000
Benefit payments	(74,000,000)	(63,000,000)
Settlements	0	0
Ending balance	1,108,000,000	1,209,000,000	1,057,000,000
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract]
Funded status	236,000,000	246,000,000
Net recorded (liability) asset at December 31	236,000,000	246,000,000
Liability, Defined Benefit Plan [Abstract]
Noncurrent assets	272,000,000	266,000,000
Current liabilities	(6,000,000)	(1,000,000)
Noncurrent liabilities	(30,000,000)	(19,000,000)
Net recorded (liability) asset	236,000,000	246,000,000
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax [Abstract]
Net actuarial (loss) gain	8,000,000	4,000,000
Prior service cost	0	0
Total	8,000,000	4,000,000
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost	21,000,000	21,000,000	20,000,000
Interest cost	36,000,000	39,000,000	42,000,000
Expected return on assets	(70,000,000)	(66,000,000)	(69,000,000)
Amortization of Prior service cost (credit)	1,000,000	1,000,000	0
Amortization of actuarial loss (gain)	(6,000,000)	(4,000,000)	(1,000,000)
Settlement charges	0	0	0
Special termination benefits	5,000,000	18,000,000	26,000,000
Net periodic benefit cost	(13,000,000)	9,000,000	18,000,000
Regulatory adjustment	17,000,000	0	(11,000,000)
Total expense recognized	4,000,000	9,000,000	7,000,000
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax [Abstract]
Net loss (gain)	(4,000,000)	(2,000,000)	(2,000,000)
Prior service cost	0	0	0
Amortization of actuarial loss	0	0	0
Amortization of prior service cost	0	0	0
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), before Tax	0	0	0
Total recognized in OCI	(4,000,000)	(2,000,000)	(2,000,000)
Total recognized in net periodic benefit cost and OCI	$ 0	$ 7,000,000	$ 5,000,000
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Discount rate	4.30%	3.70%
Interest crediting rate	3.36%	2.80%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Discount rate	3.70%	4.19%	4.49%
Expected return on plan assets	6.49%	6.47%	6.98%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Interest Crediting Rate	2.80%	2.86%	3.03%
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract]
Expected employer contributions	$ 10,000,000
Defined Benefit Plan, Expected Future Benefit Payment [Abstract]
2019	54,000,000
2020	51,000,000
2021	52,000,000
2022	52,000,000
2023	52,000,000
2024-2028	$ 257,000,000
Other Postretirement Benefits Plan [Member] \| Pre-65Retiree [Member]
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract]
Health care cost trend rate assumed for next year	6.50%	7.00%	8.00%
Rate to which the cost trend rate is assumed to decline (the ultimate trend)	4.75%	5.00%	5.00%
Other Postretirement Benefits Plan [Member] \| Retiree Aged 65 or Older [Member]
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract]
Health care cost trend rate assumed for next year	4.75%	5.00%	5.50%
Rate to which the cost trend rate is assumed to decline (the ultimate trend)	4.50%	4.50%	4.50%
Other Postretirement Benefits Plan [Member] \| Maximum [Member]
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Rate of compensation increase	10.00%	10.00%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Rate of compensation increase	10.00%	10.00%	10.00%
Other Postretirement Benefits Plan [Member] \| Minimum [Member]
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Rate of compensation increase	2.00%	2.00%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Rate of compensation increase	2.00%	2.00%	2.00%
Southern California Gas Company [Member] \| Pension Plan [Member]
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Beginning balance	$ 2,486,000,000	$ 2,343,000,000
Service cost	81,000,000	76,000,000	$ 67,000,000
Interest cost	92,000,000	98,000,000	101,000,000
Contributions from plan participants	0	0
Actuarial (gain) loss	(215,000,000)	216,000,000
Benefit payments	(65,000,000)	(73,000,000)
Special termination benefits	0	0
Settlements	(231,000,000)	(175,000,000)
Transfer of liability from other plans	0	1,000,000
Ending balance	2,148,000,000	2,486,000,000	2,343,000,000
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Actual return on plan assets	(117,000,000)	269,000,000
Employer contributions	104,000,000	93,000,000
Contributions from plan participants	0	0
Benefit payments	(65,000,000)	(73,000,000)
Settlements	(231,000,000)	(175,000,000)
Transfer of assets from other plans	0	1,000,000
Ending balance	1,385,000,000	1,694,000,000	1,579,000,000
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract]
Funded status	(763,000,000)	(792,000,000)
Net recorded (liability) asset at December 31	(763,000,000)	(792,000,000)
Liability, Defined Benefit Plan [Abstract]
Noncurrent assets	0	0
Current liabilities	(3,000,000)	(3,000,000)
Noncurrent liabilities	(760,000,000)	(789,000,000)
Net recorded (liability) asset	(763,000,000)	(792,000,000)
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax [Abstract]
Net actuarial (loss) gain	(6,000,000)	(6,000,000)
Prior service cost	(2,000,000)	(2,000,000)
Total	(8,000,000)	(8,000,000)
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract]
Projected benefit obligation	2,123,000,000	2,462,000,000
Accumulated benefit obligation	1,919,000,000	2,220,000,000
Fair value of plan assets	1,385,000,000	1,694,000,000
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost	81,000,000	76,000,000	67,000,000
Interest cost	92,000,000	98,000,000	101,000,000
Expected return on assets	(98,000,000)	(103,000,000)	(103,000,000)
Amortization of Prior service cost (credit)	8,000,000	9,000,000	9,000,000
Amortization of actuarial loss (gain)	13,000,000	19,000,000	11,000,000
Settlement charges	32,000,000	30,000,000	0
Special termination benefits	0	0	0
Net periodic benefit cost	128,000,000	129,000,000	85,000,000
Regulatory adjustment	(22,000,000)	(34,000,000)	(12,000,000)
Total expense recognized	106,000,000	95,000,000	73,000,000
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax [Abstract]
Net loss (gain)	1,000,000	0	4,000,000
Prior service cost	0	0	2,000,000
Amortization of prior service cost	(1,000,000)	(1,000,000)	0
Total recognized in OCI	0	(1,000,000)	6,000,000
Total recognized in net periodic benefit cost and OCI	$ 106,000,000	$ 94,000,000	$ 79,000,000
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Discount rate	4.30%	3.65%
Interest crediting rate	3.36%	2.80%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Discount rate	3.65%	4.10%	4.50%
Expected return on plan assets	7.00%	7.00%	7.00%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Interest Crediting Rate	2.80%	2.86%	3.03%
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract]
Expected employer contributions	$ 118,000,000
Defined Benefit Plan, Expected Future Benefit Payment [Abstract]
2019	207,000,000
2020	159,000,000
2021	154,000,000
2022	152,000,000
2023	149,000,000
2024-2028	$ 698,000,000
Southern California Gas Company [Member] \| Pension Plan [Member] \| Maximum [Member]
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Rate of compensation increase	10.00%	10.00%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Rate of compensation increase	10.00%	10.00%	10.00%
Southern California Gas Company [Member] \| Pension Plan [Member] \| Minimum [Member]
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Rate of compensation increase	2.00%	2.00%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Rate of compensation increase	2.00%	2.00%	2.00%
Southern California Gas Company [Member] \| Other Postretirement Benefits Plan [Member]
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Beginning balance	$ 737,000,000	$ 691,000,000
Service cost	15,000,000	14,000,000	$ 14,000,000
Interest cost	27,000,000	29,000,000	32,000,000
Contributions from plan participants	14,000,000	13,000,000
Actuarial (gain) loss	(100,000,000)	16,000,000
Benefit payments	(49,000,000)	(44,000,000)
Special termination benefits	2,000,000	18,000,000	11,000,000
Settlements	0	0
Transfer of liability from other plans	0	0
Ending balance	646,000,000	737,000,000	691,000,000
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Actual return on plan assets	(43,000,000)	151,000,000
Employer contributions	1,000,000	3,000,000
Contributions from plan participants	14,000,000	13,000,000
Benefit payments	(49,000,000)	(44,000,000)
Settlements	0	0
Transfer of assets from other plans	0	0
Ending balance	916,000,000	993,000,000	870,000,000
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract]
Funded status	270,000,000	256,000,000
Net recorded (liability) asset at December 31	270,000,000	256,000,000
Liability, Defined Benefit Plan [Abstract]
Noncurrent assets	270,000,000	256,000,000
Current liabilities	0	0
Noncurrent liabilities	0	0
Net recorded (liability) asset	270,000,000	256,000,000
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost	15,000,000	14,000,000	14,000,000
Interest cost	27,000,000	29,000,000	32,000,000
Expected return on assets	(56,000,000)	(53,000,000)	(56,000,000)
Amortization of Prior service cost (credit)	(3,000,000)	(3,000,000)	(4,000,000)
Amortization of actuarial loss (gain)	(2,000,000)	(3,000,000)	0
Settlement charges	0	0	0
Special termination benefits	2,000,000	18,000,000	11,000,000
Net periodic benefit cost	(17,000,000)	2,000,000	(3,000,000)
Regulatory adjustment	17,000,000	0	3,000,000
Total expense recognized	0	2,000,000	0
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax [Abstract]
Net loss (gain)	0	0	0
Prior service cost	0	0	0
Amortization of prior service cost	0	0	0
Total recognized in OCI	0	0	0
Total recognized in net periodic benefit cost and OCI	$ 0	$ 2,000,000	$ 0
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Discount rate	4.30%	3.70%
Interest crediting rate	3.36%	2.80%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Discount rate	3.70%	4.20%	4.50%
Expected return on plan assets	6.38%	6.37%	7.00%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Interest Crediting Rate	2.80%	2.86%	3.03%
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract]
Expected employer contributions	$ 1,000,000
Defined Benefit Plan, Expected Future Benefit Payment [Abstract]
2019	36,000,000
2020	36,000,000
2021	37,000,000
2022	37,000,000
2023	38,000,000
2024-2028	$ 187,000,000
Southern California Gas Company [Member] \| Other Postretirement Benefits Plan [Member] \| Maximum [Member]
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Rate of compensation increase	10.00%	10.00%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Rate of compensation increase	10.00%	10.00%	10.00%
Southern California Gas Company [Member] \| Other Postretirement Benefits Plan [Member] \| Minimum [Member]
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Rate of compensation increase	2.00%	2.00%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Rate of compensation increase	2.00%	2.00%	2.00%
San Diego Gas and Electric Company [Member]
Liability, Defined Benefit Plan [Abstract]
Noncurrent liabilities	$ (212,000,000)	$ (182,000,000)
San Diego Gas and Electric Company [Member] \| Pension Plan [Member]
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Beginning balance	971,000,000	935,000,000
Service cost	30,000,000	29,000,000	$ 29,000,000
Interest cost	35,000,000	38,000,000	41,000,000
Contributions from plan participants	0	0
Actuarial (gain) loss	(63,000,000)	50,000,000
Plan amendments	8,000,000	0
Benefit payments	(22,000,000)	(83,000,000)
Special termination benefits	0	0
Settlements	(145,000,000)	0	(75,000,000)
Transfer of liability from other plans	0	2,000,000
Ending balance	814,000,000	971,000,000	935,000,000
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Actual return on plan assets	(56,000,000)	120,000,000
Employer contributions	47,000,000	22,000,000
Contributions from plan participants	0	0
Benefit payments	(22,000,000)	(83,000,000)
Settlements	(145,000,000)	0
Transfer of assets from other plans	0	3,000,000
Ending balance	600,000,000	776,000,000	714,000,000
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract]
Funded status	(214,000,000)	(195,000,000)
Net recorded (liability) asset at December 31	(214,000,000)	(195,000,000)
Liability, Defined Benefit Plan [Abstract]
Noncurrent assets	0	0
Current liabilities	(2,000,000)	(13,000,000)
Noncurrent liabilities	(212,000,000)	(182,000,000)
Net recorded (liability) asset	(214,000,000)	(195,000,000)
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax [Abstract]
Net actuarial (loss) gain	(4,000,000)	(8,000,000)
Prior service cost	(6,000,000)	0
Total	(10,000,000)	(8,000,000)
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract]
Projected benefit obligation	788,000,000	939,000,000
Accumulated benefit obligation	762,000,000	900,000,000
Fair value of plan assets	600,000,000	776,000,000
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost	30,000,000	29,000,000	29,000,000
Interest cost	35,000,000	38,000,000	41,000,000
Expected return on assets	(47,000,000)	(47,000,000)	(49,000,000)
Amortization of Prior service cost (credit)	2,000,000	1,000,000	1,000,000
Amortization of actuarial loss (gain)	1,000,000	9,000,000	10,000,000
Settlement charges	26,000,000	0	16,000,000
Special termination benefits	0	0	0
Net periodic benefit cost	47,000,000	30,000,000	48,000,000
Regulatory adjustment	(8,000,000)	(8,000,000)	(45,000,000)
Total expense recognized	39,000,000	22,000,000	3,000,000
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax [Abstract]
Net loss (gain)	(1,000,000)	2,000,000	1,000,000
Prior service cost	8,000,000	0	0
Amortization of actuarial loss	(1,000,000)	(1,000,000)	(1,000,000)
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), before Tax	(4,000,000)	0	0
Total recognized in OCI	2,000,000	1,000,000	0
Total recognized in net periodic benefit cost and OCI	$ 41,000,000	$ 23,000,000	$ 3,000,000
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Discount rate	4.29%	3.64%
Interest crediting rate	3.36%	2.80%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Discount rate	3.64%	4.08%	4.35%
Expected return on plan assets	7.00%	7.00%	7.00%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Interest Crediting Rate	2.80%	2.86%	3.03%
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract]
Expected employer contributions	$ 40,000,000
Defined Benefit Plan, Expected Future Benefit Payment [Abstract]
2019	109,000,000
2020	69,000,000
2021	64,000,000
2022	61,000,000
2023	62,000,000
2024-2028	$ 282,000,000
San Diego Gas and Electric Company [Member] \| Pension Plan [Member] \| Maximum [Member]
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Rate of compensation increase	10.00%	10.00%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Rate of compensation increase	10.00%	10.00%	10.00%
San Diego Gas and Electric Company [Member] \| Pension Plan [Member] \| Minimum [Member]
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Rate of compensation increase	2.00%	2.00%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Rate of compensation increase	2.00%	2.00%	2.00%
San Diego Gas and Electric Company [Member] \| Other Postretirement Benefits Plan [Member]
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Beginning balance	$ 185,000,000	$ 190,000,000
Service cost	5,000,000	5,000,000	$ 5,000,000
Interest cost	7,000,000	8,000,000	7,000,000
Contributions from plan participants	8,000,000	7,000,000
Actuarial (gain) loss	(17,000,000)	(9,000,000)
Plan amendments	0	0
Benefit payments	(21,000,000)	(16,000,000)
Special termination benefits	3,000,000	0	14,000,000
Settlements	0	0
Transfer of liability from other plans	0	0
Ending balance	170,000,000	185,000,000	190,000,000
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Actual return on plan assets	(12,000,000)	30,000,000
Employer contributions	2,000,000	5,000,000
Contributions from plan participants	8,000,000	7,000,000
Benefit payments	(21,000,000)	(16,000,000)
Settlements	0	0
Transfer of assets from other plans	0	0
Ending balance	172,000,000	195,000,000	169,000,000
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract]
Funded status	2,000,000	10,000,000
Net recorded (liability) asset at December 31	2,000,000	10,000,000
Liability, Defined Benefit Plan [Abstract]
Noncurrent assets	2,000,000	10,000,000
Current liabilities	0	0
Noncurrent liabilities	0	0
Net recorded (liability) asset	2,000,000	10,000,000
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost	5,000,000	5,000,000	5,000,000
Interest cost	7,000,000	8,000,000	7,000,000
Expected return on assets	(13,000,000)	(11,000,000)	(12,000,000)
Amortization of Prior service cost (credit)	3,000,000	3,000,000	3,000,000
Amortization of actuarial loss (gain)	(3,000,000)	0	(1,000,000)
Settlement charges	0	0	0
Special termination benefits	3,000,000	0	14,000,000
Net periodic benefit cost	2,000,000	5,000,000	16,000,000
Regulatory adjustment	0	0	(14,000,000)
Total expense recognized	2,000,000	5,000,000	2,000,000
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax [Abstract]
Net loss (gain)	0	0	0
Prior service cost	0	0	0
Amortization of actuarial loss	0	0	0
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), before Tax	0	0	0
Total recognized in OCI	0	0	0
Total recognized in net periodic benefit cost and OCI	$ 2,000,000	$ 5,000,000	$ 2,000,000
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Discount rate	4.30%	3.65%
Interest crediting rate	3.36%	2.80%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Discount rate	3.65%	4.15%	4.50%
Expected return on plan assets	6.94%	6.91%	6.90%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Interest Crediting Rate	2.80%	2.86%	3.03%
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract]
Expected employer contributions	$ 0
Defined Benefit Plan, Expected Future Benefit Payment [Abstract]
2019	10,000,000
2020	10,000,000
2021	10,000,000
2022	11,000,000
2023	11,000,000
2024-2028	$ 51,000,000
San Diego Gas and Electric Company [Member] \| Other Postretirement Benefits Plan [Member] \| Maximum [Member]
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Rate of compensation increase	10.00%	10.00%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Rate of compensation increase	10.00%	10.00%	10.00%
San Diego Gas and Electric Company [Member] \| Other Postretirement Benefits Plan [Member] \| Minimum [Member]
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Rate of compensation increase	2.00%	2.00%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Rate of compensation increase	2.00%	2.00%	2.00%
Unfunded Plan [Member] \| Pension Plan [Member]
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract]
Projected benefit obligation	$ 226,000,000	$ 234,000,000
Accumulated benefit obligation	201,000,000	215,000,000
Unfunded Plan [Member] \| Other Postretirement Benefits Plan [Member]
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract]
Accumulated benefit obligation	26,000,000	9,000,000
Unfunded Plan [Member] \| Southern California Gas Company [Member] \| Pension Plan [Member]
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract]
Projected benefit obligation	25,000,000	24,000,000
Accumulated benefit obligation	21,000,000	21,000,000
Unfunded Plan [Member] \| San Diego Gas and Electric Company [Member] \| Pension Plan [Member]
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract]
Projected benefit obligation	26,000,000	32,000,000
Accumulated benefit obligation	19,000,000	30,000,000
Funded Plan [Member] \| Other Postretirement Benefits Plan [Member]
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract]
Accumulated benefit obligation	30,000,000	32,000,000
Fair value of plan assets	$ 20,000,000	$ 21,000,000

NEW ACCOUNTING STANDARDS NEW ACCOUNTING STANDARDS (Tables)

12 Months Ended

Dec. 31, 2018

Accounting Changes and Error Corrections [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Upon adoption of ASU 2017-07, our Consolidated Statements of Operations were impacted as follows:



IMPACT FROM ADOPTION OF ASU 2017-07
(Dollars in millions)
	Years ended December 31,
	2017							2016
	As previously reported		Effect of adoption			As adjusted		As previously reported		Effect of adoption			As adjusted
Sempra Energy:
Operation and maintenance	$	3,117	$	(21	)	$	3,096	$	2,970	$	6		$	2,976
Other income, net	254		(21		)	233		132		6			138
SDG&E:
Operation and maintenance	$	1,020	$	4		$	1,024	$	1,048	$	14		$	1,062
Total operating expenses	3,763		4			3,767		3,263		14			3,277
Operating income	713		(4		)	709		990		(14		)	976
Other income, net	66		4			70		50		14			64
SoCalGas:
Operation and maintenance	$	1,479	$	(5	)	$	1,474	$	1,385	$	6		$	1,391
Total operating expenses	3,163		(5		)	3,158		2,914		6			2,920
Operating income	622		5			627		557		(6		)	551
Other income, net	36		(5		)	31		32		6			38

The following table shows the expected (decrease) increase on our balance sheets at January 1, 2019 from adoption of the lease standard.



EXPECTED IMPACT FROM ADOPTION OF THE LEASE STANDARD
(Dollars in millions)
	Sempra Energy Consolidated			SDG&E		SoCalGas
Other current assets	$	(68	)	$	—	$	—
Property, plant and equipment, net	(147		)	—		—
Right-of-use assets – operating leases	623			130		116
Deferred income taxes	(3		)	—		—
Other current liabilities	81			20		23
Long-term debt	(138		)	—		—
Deferred credits and other	445			110		93
Retained earnings	17			—		—

The following table shows the expected increase (decrease) from adoption of the lease standard on our balance sheet at January 1, 2019.



EXPECTED IMPACT FROM ADOPTION OF THE LEASE STANDARD
(Dollars in millions)
Right-of-use assets – operating leases	$	191
Deferred income taxes	(3		)
Property, plant and equipment, net⁽¹⁾	(147		)
Other current liabilities	3
Long-term debt	(138		)
Other long-term liabilities	159
Retained earnings⁽²⁾	17


⁽¹⁾	Included in Other Assets.


⁽²⁾	Included in Shareholders’ Equity.

Upon adoption of ASU 2017-07, our Condensed Statements of Operations were impacted as follows:



IMPACT FROM ADOPTION OF ASU 2017-07
(Dollars in millions)
	Years ended December 31,
	2017									2016
	As previously reported			Effect of adoption			As adjusted			As previously reported			Effect of adoption			As adjusted
Sempra Energy:
Operation and maintenance	$	(87	)	$	7		$	(80	)	$	(81	)	$	5		$	(76	)
Other income (expense), net	107			(7		)	100			(2		)	(5		)	(7		)

INCOME TAXES - DEFERRED INCOME TAXES (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Deferred Tax Assets, Gross [Abstract]
Less: valuation allowances	$ 164	$ 133
Deferred income taxes, noncurrent	151	170
Deferred income taxes	2,571	2,767
Sempra Energy Consolidated [Member]
Deferred Tax Liabilities, Gross [Abstract]
Differences in financial and tax bases of fixed assets, investments and other assets	3,780	4,233
U.S. state and non-U.S. withholding tax on repatriation of foreign earnings	382	360
Regulatory balancing accounts	359	376
Property taxes	41	37
Other deferred income tax liabilities	130	117
Total deferred income tax liabilities	4,692	5,123
Deferred Tax Assets, Gross [Abstract]
Tax credits	1,114	1,066
Net operating losses	725	968
Compensation-related items	181	199
Postretirement benefits	255	251
Other deferred income tax assets	92	115
Accrued expenses not yet deductible	69	60
Deferred income tax assets before valuation allowances	2,436	2,659
Less: valuation allowances	164	133
Total deferred income tax assets	2,272	2,526
Net deferred income tax liability	2,420	2,597
Deferred income taxes, noncurrent	151	170
Deferred income taxes	2,571	2,767
San Diego Gas and Electric Company [Member]
Deferred Tax Liabilities, Gross [Abstract]
Differences in financial and tax bases of fixed assets, investments and other assets	1,578	1,472
Regulatory balancing accounts	84	113
Property taxes	29	26
Other deferred income tax liabilities	10	10
Total deferred income tax liabilities	1,701	1,621
Deferred Tax Assets, Gross [Abstract]
Tax credits	6	7
Net operating losses	0	0
Compensation-related items	5	5
Postretirement benefits	58	43
Other deferred income tax assets	6	19
State income taxes	6	14
Accrued expenses not yet deductible	4	3
Total deferred income tax assets	85	91
Net deferred income tax liability	1,616	1,530
Deferred income taxes	1,616	1,530
Southern California Gas Company [Member]
Deferred Tax Liabilities, Gross [Abstract]
Differences in financial and tax bases of fixed assets, investments and other assets	1,077	987
Regulatory balancing accounts	283	271
Property taxes	13	12
Other deferred income tax liabilities	2	1
Total deferred income tax liabilities	1,375	1,271
Deferred Tax Assets, Gross [Abstract]
Tax credits	3	15
Net operating losses	0	58
Compensation-related items	25	25
Postretirement benefits	140	152
Other deferred income tax assets	14	7
State income taxes	3	7
Accrued expenses not yet deductible	13	12
Total deferred income tax assets	198	276
Net deferred income tax liability	1,177	995
Deferred income taxes	$ 1,177	$ 995

ACQUISTION AND DIVESTITURE ACTIVITY - PRO FORMA INFORMATION (Details) - Compania Transmisora del Norte Grande S.A. [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Revenues	$ 11,703	$ 11,224
Net income	1,130	356
Earnings	$ 928	$ 261

DERIVATIVE FINANCIAL INSTRUMENTS - CASH FLOW HEDGES (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Cash flow hedge gain (loss) to be reclassified within 12 months	$ 22
Maximum length of time hedged in cash flow hedge	13 years
Equity Method Investee [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Maximum length of time hedged in cash flow hedge	15 years
San Diego Gas and Electric Company [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Maximum length of time hedged in cash flow hedge	1 year
San Diego Gas and Electric Company [Member] \| Non-controlling interests [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Cash flow hedge gain (loss) to be reclassified within 12 months	$ (2)
Southern California Gas Company [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Cash flow hedge gain (loss) to be reclassified within 12 months	$ (1)

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Recurring Fair Value Measures Table



RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED
(Dollars in millions)
	Fair value at December 31, 2018
	Level 1			Level 2		Level 3		Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	407		$	4	$	—	$	411
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	43			10		—		53
Municipal bonds	—			269		—		269
Other securities	—			234		—		234
Total debt securities	43			513		—		556
Total nuclear decommissioning trusts⁽¹⁾	450			517		—		967
Interest rate and foreign exchange instruments	—			2		—		2
Commodity contracts not subject to rate recovery	—			24		—		24
Effect of netting and allocation of collateral⁽²⁾	19			—		—		19
Commodity contracts subject to rate recovery	2			9		278		289
Effect of netting and allocation of collateral⁽²⁾	28			—		5		33
Total	$	499		$	552	$	283	$	1,334

Liabilities:
Interest rate and foreign exchange instruments	$	—		$	150	$	—	$	150
Commodity contracts not subject to rate recovery	—			34		—		34
Commodity contracts subject to rate recovery	2			5		99		106
Effect of netting and allocation of collateral⁽²⁾	(2		)	—		—		(2		)
Total	$	—		$	189	$	99	$	288

	Fair value at December 31, 2017
	Level 1			Level 2		Level 3		Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	491		$	5	$	—	$	496
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	45			9		—		54
Municipal bonds	—			250		—		250
Other securities	—			217		—		217
Total debt securities	45			476		—		521
Total nuclear decommissioning trusts⁽¹⁾	536			481		—		1,017
Interest rate and foreign exchange instruments	—			7		—		7
Commodity contracts not subject to rate recovery	5			12		—		17
Effect of netting and allocation of collateral⁽²⁾	2			—		—		2
Commodity contracts subject to rate recovery	—			2		126		128
Effect of netting and allocation of collateral⁽²⁾	12			—		5		17
Total	$	555		$	502	$	131	$	1,188

Liabilities:
Interest rate and foreign exchange instruments	$	—		$	217	$	—	$	217
Commodity contracts not subject to rate recovery	—			6		—		6
Commodity contracts subject to rate recovery	23			7		154		184
Effect of netting and allocation of collateral⁽²⁾	(23		)	—		—		(23		)
Total	$	—		$	230	$	154	$	384


⁽¹⁾	Excludes cash balances and cash equivalents.


⁽²⁾	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 – SDG&E
(Dollars in millions)
	Fair value at December 31, 2018
	Level 1			Level 2		Level 3		Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	407		$	4	$	—	$	411
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	43			10		—		53
Municipal bonds	—			269		—		269
Other securities	—			234		—		234
Total debt securities	43			513		—		556
Total nuclear decommissioning trusts⁽¹⁾	450			517		—		967
Commodity contracts subject to rate recovery	1			6		278		285
Effect of netting and allocation of collateral⁽²⁾	23			—		5		28
Total	$	474		$	523	$	283	$	1,280

Liabilities:
Interest rate instruments	$	—		$	1	$	—	$	1
Commodity contracts subject to rate recovery	2			—		99		101
Effect of netting and allocation of collateral⁽²⁾	(2		)	—		—		(2		)
Total	$	—		$	1	$	99	$	100

	Fair value at December 31, 2017
	Level 1			Level 2		Level 3		Total
Assets:
Nuclear decommissioning trusts:
Equity securities	$	491		$	5	$	—	$	496
Debt securities:
Debt securities issued by the U.S. Treasury and other
U.S. government corporations and agencies	45			9		—		54
Municipal bonds	—			250		—		250
Other securities	—			217		—		217
Total debt securities	45			476		—		521
Total nuclear decommissioning trusts⁽¹⁾	536			481		—		1,017
Commodity contracts subject to rate recovery	—			—		126		126
Effect of netting and allocation of collateral⁽²⁾	11			—		5		16
Total	$	547		$	481	$	131	$	1,159

Liabilities:
Interest rate instruments	$	—		$	13	$	—	$	13
Commodity contracts subject to rate recovery	23			5		154		182
Effect of netting and allocation of collateral⁽²⁾	(23		)	—		—		(23		)
Total	$	—		$	18	$	154	$	172


⁽¹⁾	Excludes cash balances and cash equivalents.


⁽²⁾	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 – SOCALGAS
(Dollars in millions)
	Fair value at December 31, 2018
	Level 1		Level 2		Level 3		Total
Assets:
Commodity contracts subject to rate recovery	$	1	$	3	$	—	$	4
Effect of netting and allocation of collateral⁽¹⁾	5		—		—		5
Total	$	6	$	3	$	—	$	9

Liabilities:
Commodity contracts subject to rate recovery	$	—	$	5	$	—	$	5
Total	$	—	$	5	$	—	$	5

	Fair value at December 31, 2017
	Level 1		Level 2		Level 3		Total
Assets:
Commodity contracts subject to rate recovery	$	—	$	2	$	—	$	2
Effect of netting and allocation of collateral⁽¹⁾	1		—		—		1
Total	$	1	$	2	$	—	$	3

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

⁽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⁽¹⁾
(Dollars in millions)
	Years ended December 31,
	2018			2017			2016
Balance at January 1	$	(28	)	$	(74	)	$	19
Realized and unrealized gains (losses)	209			34			(120		)
Allocated transmission instruments	10			6			8
Settlements	(12		)	6			19
Balance at December 31	$	179		$	(28	)	$	(74	)
Change in unrealized gains (losses) relating to
instruments still held at December 31	$	183		$	30		$	(101	)

⁽¹⁾

Excludes the effect of the contractual ability to settle contracts under master netting agreements.

Schedule of Auction Price Inputs

For the CRRs settling from January 1 to December 31, the auction price inputs, at a given location, were in the following ranges for the years indicated below:



CONGESTION REVENUE RIGHTS AUCTION PRICE INPUTS

Settlement year		Price per MWh						Median price per MWh
2019	$	(8.57	)	to	$	35.21	$	(2.94	)
2018		(7.25	)	to		11.99		0.09
2017		(11.88	)	to		6.93		(0.14	)

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. The range and weighted-average price of these inputs was as follows:



LONG-TERM, FIXED-PRICE ELECTRICITY POSITIONS PRICE INPUTS

Settlement year		Price per MWh					Weighted-average price per MWh
2018	$	22.20	to	$	76.85	$	42.69
2017		22.55	to		44.10		35.23

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 Consolidated Balance Sheets at December 31, 2018 and 2017:



FAIR VALUE OF FINANCIAL INSTRUMENTS
(Dollars in millions)
	December 31, 2018
	Carrying		Fair value
	amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Long-term amounts due from unconsolidated affiliates	$	688	$	—	$	648	$	47	$	695
Long-term amounts due to unconsolidated affiliates	37		—		35		—		35
Total long-term debt⁽¹⁾⁽²⁾	22,067		—		21,274		351		21,625
SDG&E:
Total long-term debt⁽²⁾⁽³⁾	$	4,996	$	—	$	4,897	$	220	$	5,117
SoCalGas:
Total long-term debt⁽⁴⁾	$	3,459	$	—	$	3,505	$	—	$	3,505

	December 31, 2017
	Carrying		Fair value
	amount		Level 1		Level 2		Level 3		Total
Sempra Energy Consolidated:
Long-term amounts due from unconsolidated affiliates	$	598	$	—	$	510	$	108	$	618
Long-term amounts due to unconsolidated affiliates	35		—		32		—		32
Total long-term debt⁽¹⁾⁽²⁾	17,138		817		17,134		458		18,409
SDG&E:
Total long-term debt⁽²⁾⁽³⁾	$	4,868	$	—	$	5,073	$	295	$	5,368
SoCalGas:
Total long-term debt⁽⁴⁾	$	3,009	$	—	$	3,192	$	—	$	3,192


⁽¹⁾	Before reductions for unamortized discount (net of premium) and debt issuance costs of $202 million and $143 million at December 31, 2018 and 2017, respectively, and excluding build-to-suit and capital lease obligations of $1,419 million and $877 million at December 31, 2018 and 2017, respectively. We discuss our long-term debt in Note 7.


⁽²⁾	Level 3 instruments include $220 million and $295 million at December 31, 2018 and 2017, respectively, related to Otay Mesa VIE.


⁽³⁾	Before reductions for unamortized discount and debt issuance costs of $49 million and $45 million at December 31, 2018 and 2017, respectively, and excluding capital lease obligations of $1,272 million and $732 million at December 31, 2018 and 2017, respectively.

⁽⁴⁾

Before reductions for unamortized discount and debt issuance costs of $32 million and $24 million at December 31, 2018 and 2017, respectively, and excluding capital lease obligations of $3 million and $1 million at December 31, 2018 and 2017, respectively

Fair Value Measurements, Nonrecurring Table

NON-RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED

Measurement date

Estimated

fair

value (in millions)

Valuation technique

Fair

value

hierarchy

% of

fair value

measurement

Inputs used to
develop
measurement

Range of
inputs (weighted average)

Non-utility natural gas storage assets

December 31, 2018

337

⁽¹⁾

Market approach

Level 2

100%

Assets’ sales prices

100%

Non-utility natural gas storage assets

June 25, 2018

190

⁽¹⁾⁽²⁾

Discounted cash flows

Level 3

100%

Storage rates
per Dth/month

$0.06 - $0.22 ($0.10)

⁽³⁾

Discount rate

10%

⁽⁴⁾

Certain of our U.S. wind equity method investments

June 25, 2018

145

⁽⁵⁾

Discounted cash flows

Level 3

100%

Contracted and observable merchant prices per MWh

$29 - $92

⁽³⁾

Discount rate

8% - 10% (8.7%)

⁽⁴⁾

TdM

June 30, 2017

Market approach

Level 2

100%

Purchase price offer

100%

TdM

September 29, 2016

145

Market approach

Level 2

100%

Purchase price offers

100%

Investment in

IEnova Pipelines

September 26, 2016

1,144

⁽⁶⁾

Market approach

Level 2

100%

Equity sale price

100%

Investment in
Rockies Express

March 29, 2016

440

Market approach

Level 2

100%

Equity sale price

100%


⁽¹⁾	Includes Mississippi Hub, Bay Gas and other non-utility assets, which are classified as held for sale at December 31, 2018 with a net carrying value of $323 million, reflecting estimated costs to sell.


⁽²⁾	Includes LA Storage, which continues to be classified as PP&E.


⁽³⁾	Generally, significant increases (decreases) in this input in isolation would result in a significantly higher (lower) fair value measurement.


⁽⁴⁾	An increase in the discount rate would result in a decrease in fair value.


⁽⁵⁾	At December 31, 2018, these U.S. wind equity method investments had a carrying value of $139 million, reflecting subsequent business activity.

⁽⁶⁾

Immediately prior to acquiring a 100-percent ownership interest in IEnova Pipelines.

DEBT AND CREDIT FACILITIES - NARRATIVE (Details)					1 Months Ended		12 Months Ended
DEBT AND CREDIT FACILITIES - NARRATIVE (Details)	Sep. 24, 2018 USD ($)	May 17, 2018 USD ($)	May 15, 2018 USD ($)	Jan. 12, 2018 USD ($)	Dec. 31, 2018 USD ($) line_of_credit	Jan. 31, 2018 USD ($)	Dec. 31, 2018 USD ($) line_of_credit	Dec. 31, 2017 USD ($)	Dec. 13, 2018 USD ($)	Oct. 31, 2018 USD ($)
Debt Instrument [Line Items]
Letters of credit outstanding					$ 598,000,000		$ 598,000,000
Unsecured debt					12,900,000,000		12,900,000,000
Callable long-term debt, not subject to make-whole provisions					976,000,000		976,000,000
Repayments of debt				$ 800,000,000		$ 800,000,000
Sempra Energy [Member]
Debt Instrument [Line Items]
Total facility					1,250,000,000		1,250,000,000
Available unused credit					1,250,000,000		1,250,000,000
Sempra Energy [Member] \| Fixed and Variable Rate Notes [Member]
Debt Instrument [Line Items]
Gross long-term debt						4,900,000,000
Unamortized debt discount (premium) and debt issuance costs						$ 68,000,000
Sempra U.S. Businesses [Member]
Debt Instrument [Line Items]
Total facility					5,435,000,000		5,435,000,000
Available unused credit					$ 4,219,000,000		$ 4,219,000,000
Sempra Energy Consolidated [Member]
Debt Instrument [Line Items]
Number of lines of credit \| line_of_credit					3		3
Weighted average interest rate on total short-term debt outstanding					3.01%		3.01%	1.92%
South American Utilities and Mexico Combined [Member]
Debt Instrument [Line Items]
Total facility					$ 1,819,000,000		$ 1,819,000,000
Available unused credit					829,000,000		829,000,000
Line of credit					990,000,000		990,000,000
Southern California Gas Company [Member]
Debt Instrument [Line Items]
Total facility					750,000,000		750,000,000
Available unused credit					$ 453,000,000		$ 453,000,000
Weighted average interest rate on total short-term debt outstanding					2.58%		2.58%	1.64%
Unsecured debt					$ 9,000,000		$ 9,000,000
Callable long-term debt, not subject to make-whole provisions					4,000,000		4,000,000
First mortgage bonds available for future issuance					1,200,000,000		1,200,000,000
Gross long-term debt					3,450,000,000		3,450,000,000	$ 3,000,000,000
Otay Mesa Energy Center [Member]
Debt Instrument [Line Items]
Callable long-term debt, not subject to make-whole provisions					220,000,000		220,000,000
OMEC LLC [Member] \| Secured Debt [Member] \| December 2018 OMEC Loan Agreement [Member]
Debt Instrument [Line Items]
Debt amount					$ 220,000,000		220,000,000
OMEC LLC [Member] \| Secured Debt [Member] \| December 2018 OMEC Loan Agreement [Member] \| LIBOR [Member]
Debt Instrument [Line Items]
Variable percentage rate					2.00%
San Diego Gas and Electric Company [Member]
Debt Instrument [Line Items]
Total facility					$ 750,000,000		750,000,000
Available unused credit					$ 453,000,000		$ 453,000,000
Weighted average interest rate on total short-term debt outstanding					2.97%		2.97%	1.65%
Unsecured debt					$ 0		$ 0
Callable long-term debt, not subject to make-whole provisions					251,000,000		251,000,000
First mortgage bonds available for future issuance					5,700,000,000		5,700,000,000
Gross long-term debt					4,776,000,000		4,776,000,000	$ 4,573,000,000
San Diego Gas and Electric Company [Member] \| Four Point One Five Percent First Mortgage Bonds Maturing Twenty Forty Eight [Member]
Debt Instrument [Line Items]
Proceeds from issuance of first mortgage bond		$ 400,000,000
Stated percentage rate		4.15%
Southern California Gas Company [Member] \| Four Point One Two Five Percent First Mortgage Bonds Maturing Twenty Forty Eight [Member]
Debt Instrument [Line Items]
Proceeds from issuance of first mortgage bond			$ 400,000,000
Stated percentage rate			4.125%
Southern California Gas Company [Member] \| Four Point Three Percent First Mortgage Bonds Maturing Twenty Forty Nine [Member]
Debt Instrument [Line Items]
Proceeds from issuance of first mortgage bond	$ 550,000,000
Stated percentage rate	4.30%
Sempra South American Utilities [Member] \| Luz Del Sur [Member]
Debt Instrument [Line Items]
Proceeds from issuance of debt							107,000,000
Line of credit					$ 61,000,000		$ 61,000,000
Sempra South American Utilities [Member] \| Luz Del Sur [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Stated percentage rate					4.30%		4.30%
Sempra South American Utilities [Member] \| Luz Del Sur [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Stated percentage rate					5.70%		5.70%
Sempra South American Utilities [Member] \| Luz Del Sur [Member] \| Corporate Debt Securities [Member] \| Corporate Bonds Maturing 2028 [Member]
Debt Instrument [Line Items]
Stated percentage rate										7.00%
Debt amount										$ 50,000,000
Interest Rate Swap, maturing on April 30, 2019 [Member] \| OMEC LLC [Member]
Debt Instrument [Line Items]
Notional amount of derivative liability					$ 142,000,000		$ 142,000,000
Fixed percentage interest rate					5.2925%		5.2925%
Interest Rate Swap, maturing on October 31, 2019 [Member] \| OMEC LLC [Member]
Debt Instrument [Line Items]
Notional amount of derivative liability					$ 159,000,000		$ 159,000,000
Fixed percentage interest rate					2.765%		2.765%
Swaption [Member] \| OMEC LLC [Member]
Debt Instrument [Line Items]
Notional amount of derivative liability					$ 142,000,000		$ 142,000,000
Fixed percentage interest rate					3.0375%		3.0375%
Peaker Plant Facility [Member] \| San Diego Gas and Electric Company [Member]
Debt Instrument [Line Items]
Power purchase agreement term								20 years
Capital lease obligations incurred					$ 550,000,000
Certain Subsidiaries Of Sempra Renewables [Member] \| Disposal Group Disposed of by Sale [Member]
Debt Instrument [Line Items]
Proceeds from sale									$ 1,600,000,000
Long-term debt									$ 70,000,000

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - NONCONTROLLING INTERESTS (Details) $ / shares in Units, $ in Millions, $ in Millions				1 Months Ended					3 Months Ended		12 Months Ended
	Jan. 12, 2018 USD ($)	Oct. 13, 2016 USD ($) $ / shares $ / $ shares	Oct. 13, 2016 MXN ($) shares	Feb. 28, 2019 USD ($) shares	Dec. 31, 2018 USD ($)	Apr. 30, 2018 USD ($)	Jan. 31, 2018 USD ($)	Dec. 31, 2016 USD ($) facility	Dec. 31, 2018 USD ($) shares	Dec. 31, 2017 USD ($) facility company	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Sep. 30, 2018	Oct. 19, 2016	Oct. 18, 2016
Noncontrolling Interest [Line Items]
Stock repurchased in the period											$ 21	$ 15	$ 56
Repayments of debt	$ 800						$ 800
Impact of issuance on equity											90	196	1,701
Decrease from divestiture from noncontrolling interests											486
IEnova [Member]
Noncontrolling Interest [Line Items]
Stock repurchased during the period (in shares) \| shares									2,000,000
Stock repurchased in the period									$ 7
Ownership interest															66.40%	81.10%
Price of shares issued (in pesos per share) \| $ / shares		$ 80.00
Additional shares purchased (in shares) \| shares		83,125,000
Cash consideration (fair value of total consideration)		$ 351
Shares issued (in shares) \| shares		380,000,000	380,000,000
Proceeds from sale of shares		$ 1,570	$ 29,860
Exchange rate (in pesos) \| $ / $		18.96
IEnova [Member] \| Bridge Loan [Member]
Noncontrolling Interest [Line Items]
Repayments of debt		$ 1,150
IEnova [Member] \| Related Party Debt [Member]
Noncontrolling Interest [Line Items]
Repayments of debt		100
IEnova [Member] \| Revolving Credit Facility [Member]
Noncontrolling Interest [Line Items]
Repayments of debt		250
Ventika [Member] \| IEnova [Member]
Noncontrolling Interest [Line Items]
Cash consideration (fair value of total consideration)		$ 50
Shareholders' equity [Member]
Noncontrolling Interest [Line Items]
Stock repurchased in the period											21	15	56
Impact of issuance on equity											4		281
Shareholders' equity [Member] \| IEnova [Member]
Noncontrolling Interest [Line Items]
Impact of issuance on equity													281
Non-controlling interests [Member]
Noncontrolling Interest [Line Items]
Impact of issuance on equity											86	$ 196	1,420
Decrease from divestiture from noncontrolling interests											$ 486
Non-controlling interests [Member] \| IEnova [Member]
Noncontrolling Interest [Line Items]
Impact of issuance on equity													$ 948
Sempra Renewables [Member] \| Noncontrolling Tax Equity Investors [Member]
Noncontrolling Interest [Line Items]
Number of tax equity limited liability companies formed \| company										2
Proceeds from sale of noncontrolling interests								$ 474
Sempra Renewables [Member] \| Tax equity arrangement – solar [Member]
Noncontrolling Interest [Line Items]
Decrease from divestiture from noncontrolling interests					$ 486
Solar Power Projects [Member] \| Sempra Renewables [Member] \| Noncontrolling Tax Equity Investors [Member]
Noncontrolling Interest [Line Items]
Number of facilities acquired \| facility								3		4
Proceeds from sale of noncontrolling interests						$ 85				$ 104
Wind Generation Projects [Member] \| Sempra Renewables [Member] \| Noncontrolling Tax Equity Investors [Member]
Noncontrolling Interest [Line Items]
Number of facilities acquired \| facility										1
Proceeds from sale of noncontrolling interests										$ 92
IEnova [Member]
Noncontrolling Interest [Line Items]
Ownership interest					66.50%				66.50%		66.50%			66.40%
Subsequent Event [Member] \| IEnova [Member]
Noncontrolling Interest [Line Items]
Stock repurchased during the period (in shares) \| shares				1,600,000
Stock repurchased in the period				$ 6

DEBT AND CREDIT FACILITIES - SCHEDULE OF LONG-TERM DEBT INSTRUMENTS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Current portion of long-term debt	$ (1,673)	$ (1,427)
Long-term debt	21,611	16,445
San Diego Gas and Electric Company [Member]
Debt Instrument [Line Items]
Gross long-term debt	4,776	4,573
Capital lease obligations	1,272	732
Long-term debt and capital lease obligations	6,268	5,600
Current portion of long-term debt	(81)	(220)
Unamortized discount on long-term debt	(12)	(11)
Unamortized debt issuance costs	(37)	(34)
Long-term debt	6,138	5,335
San Diego Gas and Electric Company [Member] \| First Mortgage Bonds, Due July 2018 [Member]
Debt Instrument [Line Items]
Gross long-term debt	0	$ 161
Stated percentage rate		1.65%
San Diego Gas and Electric Company [Member] \| First Mortgage Bonds, Due August 2021 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 350	$ 350
Stated percentage rate	3.00%
San Diego Gas and Electric Company [Member] \| First Mortgage Bonds Due February 2022 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 125	161
Stated percentage rate	1.914%
San Diego Gas and Electric Company [Member] \| First Mortgage Bonds, Due September 2023 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 450	450
Stated percentage rate	3.60%
San Diego Gas and Electric Company [Member] \| First Mortgage Bonds Due May 2026 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 500	500
Stated percentage rate	2.50%
San Diego Gas and Electric Company [Member] \| First Mortgage Bonds, Due January and February 2034 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 176	176
Stated percentage rate	5.875%
San Diego Gas and Electric Company [Member] \| First Mortgage Bonds, Due May 2035 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 250	250
Stated percentage rate	5.35%
San Diego Gas and Electric Company [Member] \| First Mortgage Bonds, Due September 2037 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 250	250
Stated percentage rate	6.125%
San Diego Gas and Electric Company [Member] \| First Mortgage Bonds, Due May 2039 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 75	75
Stated percentage rate	4.00%
San Diego Gas and Electric Company [Member] \| First Mortgage Bonds, Due June 2039 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 300	300
Stated percentage rate	6.00%
San Diego Gas and Electric Company [Member] \| First Mortgage Bonds, Due May 2040 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 250	250
Stated percentage rate	5.35%
San Diego Gas and Electric Company [Member] \| First Mortgage Bonds, Due August 2040 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 500	500
Stated percentage rate	4.50%
San Diego Gas and Electric Company [Member] \| First Mortgage Bonds, Due November 2041 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 250	250
Stated percentage rate	3.95%
San Diego Gas and Electric Company [Member] \| First Mortgage Bonds, Due April 2042 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 250	250
Stated percentage rate	4.30%
San Diego Gas and Electric Company [Member] \| First Mortgage Bonds, Due June 2047 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 400	400
Stated percentage rate	3.75%
San Diego Gas and Electric Company [Member] \| First Mortgage Bonds, Due May 2048 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 400	0
Stated percentage rate	4.15%
San Diego Gas and Electric Company [Member] \| Capital Lease Obligations, Purchased Power Agreements [Member]
Debt Instrument [Line Items]
Capital lease obligations	$ 1,270	731
San Diego Gas and Electric Company [Member] \| Capital Lease Obligations, Other [Member]
Debt Instrument [Line Items]
Capital lease obligations	2	1
San Diego Gas and Electric Company [Member] \| First Mortgage Bonds, Due June 2026 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 250	250
Stated percentage rate	6.00%
San Diego Gas and Electric Company [Member] \| Other Long-term Debt [Member]
Debt Instrument [Line Items]
Long-term debt and capital lease obligations	$ 1,492	1,027
San Diego Gas and Electric Company [Member] \| Otay Mesa Energy Center Loan Payable Currently Through April 2019 [Member]
Debt Instrument [Line Items]
Stated percentage rate	5.2925%
Variable percentage rate	4.7896%
Southern California Gas Company [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 3,450	3,000
Capital lease obligations	3	1
Long-term debt and capital lease obligations	3,462	3,010
Current portion of long-term debt	(3)	(501)
Unamortized discount on long-term debt	(6)	(7)
Unamortized debt issuance costs	(26)	(17)
Long-term debt	3,427	2,485
Southern California Gas Company [Member] \| First Mortgage Bonds, Due April 2018 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 0	250
Stated percentage rate	5.45%
Southern California Gas Company [Member] \| First Mortgage Bonds Due June 2018 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 0	250
Stated percentage rate	1.55%
Southern California Gas Company [Member] \| First Mortgage Bonds, Due September 2024 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 500	500
Stated percentage rate	3.15%
Southern California Gas Company [Member] \| First Mortgage Bonds Due June 2025 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 350	350
Stated percentage rate	3.20%
Southern California Gas Company [Member] \| First Mortgage Bonds, Due June 2026 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 500	500
Stated percentage rate	2.60%
Southern California Gas Company [Member] \| First Mortgage Bonds, Due November 2035 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 250	250
Stated percentage rate	5.75%
Southern California Gas Company [Member] \| First Mortgage Bonds, Due November 2040 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 300	300
Stated percentage rate	5.125%
Southern California Gas Company [Member] \| First Mortgage Bonds, Due September 2042 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 350	350
Stated percentage rate	3.75%
Southern California Gas Company [Member] \| First Mortgage Bonds, Due March 2044 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 250	250
Stated percentage rate	4.45%
Southern California Gas Company [Member] \| First Mortgage Bonds, Due June 2048 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 400	0
Stated percentage rate	4.125%
Southern California Gas Company [Member] \| First Mortgage Bonds Due January 2049 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 550	0
Stated percentage rate	4.30%
Southern California Gas Company [Member] \| Other Long-term Debt [Member]
Debt Instrument [Line Items]
Long-term debt and capital lease obligations	$ 12	10
Southern California Gas Company [Member] \| Other Long-term Debt, Due May 2026 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 4	4
Stated percentage rate	1.875%
Southern California Gas Company [Member] \| Other Long-term Debt, Due January 2028 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 5	5
Stated percentage rate	5.67%
Sempra Energy [Member]
Debt Instrument [Line Items]
Build to suit lease	$ 138	138
Sempra Energy [Member] \| Other Long-term Debt, Due June 2018 [Member]
Debt Instrument [Line Items]
Gross long-term debt	0	$ 500
Stated percentage rate		6.15%
Sempra Energy [Member] \| Other Long-term Debt, Due February 2019 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 500	$ 500
Stated percentage rate	9.80%
Sempra Energy [Member] \| Other Long-term Debt, Due July 2019 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 500	0
Stated percentage rate	2.69%
Sempra Energy [Member] \| Other Long-term Debt, Due October 2019 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 500	500
Stated percentage rate	1.625%
Sempra Energy [Member] \| Other Long Term Debt Due February 2020 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 500	0
Sempra Energy [Member] \| Other Long Term Debt Due March 2020 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 500	500
Stated percentage rate	2.40%
Sempra Energy [Member] \| Other Long Term Debt, Due November 2020 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 400	400
Stated percentage rate	2.85%
Sempra Energy [Member] \| Other Long-term Debt, Due January 2021 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 700	0
Effective percentage rate	2.94%
Sempra Energy [Member] \| Other Long Term Debt, Due March 2021 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 850	850
Effective percentage rate	3.24%
Sempra Energy [Member] \| Other Long-term Debt, Due October 2022 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 500	500
Stated percentage rate	2.875%
Sempra Energy [Member] \| Other Long-term Debt, Due February 2023 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 500	0
Stated percentage rate	2.90%
Sempra Energy [Member] \| Other Long-term Debt, Due December 2023 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 500	500
Stated percentage rate	4.05%
Sempra Energy [Member] \| Other Long Term Debt Due June 2024 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 500	500
Stated percentage rate	3.55%
Sempra Energy [Member] \| Other Long-term Debt, Due November 2025 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 350	350
Stated percentage rate	3.75%
Sempra Energy [Member] \| Other Long Term Debt Due June 2027 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 750	750
Stated percentage rate	3.25%
Sempra Energy [Member] \| Other Long Term Debt Due February 2028 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 1,000	0
Sempra Energy [Member] \| Other Long Term Debt Due February 2038 [Member]
Debt Instrument [Line Items]
Gross long-term debt	1,000	0
Sempra Energy [Member] \| Other Long-Term Debt, Due October 2039 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 750	750
Stated percentage rate	6.00%
Sempra Energy [Member] \| Other Long Term Debt Due February 2048 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 800	0
Stated percentage rate	4.00%
Sempra Energy [Member] \| Market Value Adjustment For Interest Rate Swap [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 0	(1)
Sempra Energy [Member] \| Two Point Four Percent Notes Due Twenty Twenty [Member]
Debt Instrument [Line Items]
Stated percentage rate	2.40%
Sempra Energy [Member] \| Two Point Nine Percent Notes Due Twenty Twenty Three [Member]
Debt Instrument [Line Items]
Stated percentage rate	2.90%
Sempra Energy [Member] \| Three Point Four Percent Notes Due Twenty Twenty Eight [Member]
Debt Instrument [Line Items]
Stated percentage rate	3.40%
Sempra Energy [Member] \| Three Point Eight Percent Notes Due Twenty Twenty Eight [Member]
Debt Instrument [Line Items]
Stated percentage rate	3.80%
Sempra Energy [Member] \| Four Percent Notes Due Twenty Forty Eight [Member]
Debt Instrument [Line Items]
Stated percentage rate	4.00%
Sempra South American Utilities [Member]
Debt Instrument [Line Items]
Capital lease obligations	$ 6	6
Sempra South American Utilities [Member] \| Other Long-term Debt, Currently Through October 2030 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 186	205
Stated percentage rate	4.25%
Sempra South American Utilities [Member] \| Other Long-term Debt, Currently Through December 2018 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 105	53
Sempra South American Utilities [Member] \| Other Long-term Debt, Currently Through December 2018 [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Stated percentage rate	4.30%
Sempra South American Utilities [Member] \| Other Long-term Debt, Currently Through December 2018 [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Stated percentage rate	5.70%
Sempra South American Utilities [Member] \| Other Long Term Debt, Payable Currently Through September 2029 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 432	415
Sempra South American Utilities [Member] \| Other Long Term Debt, Payable Currently Through September 2029 [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Stated percentage rate	4.75%
Sempra South American Utilities [Member] \| Other Long Term Debt, Payable Currently Through September 2029 [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Stated percentage rate	8.75%
Sempra South American Utilities [Member] \| Other Long Term Debt, Payable Currently Through May 2022 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 4	6
Sempra South American Utilities [Member] \| Other Long Term Debt, Payable Currently Through May 2022 [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Stated percentage rate	3.77%
Sempra South American Utilities [Member] \| Other Long Term Debt, Payable Currently Through May 2022 [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Stated percentage rate	4.61%
Sempra Mexico [Member] \| Other Long-term Debt, Due February 2023 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 198	198
Stated percentage rate	6.30%
Effective percentage rate	4.12%
Sempra Mexico [Member] \| Other Long-term Debt, Due February 2018 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 0	66
Variable percentage rate	2.66%
Sempra Mexico [Member] \| Other Long-term Debt, Currently Through December 2026 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 275	314
Stated percentage rate	4.88%
Sempra Mexico [Member] \| Other Long-term Debt, Currently Through January 2028 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 300	300
Stated percentage rate	3.75%
Sempra Mexico [Member] \| Other Long Term Debt, Payable Currently Through March 2032 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 447	468
Stated percentage rate	6.67%
Long-term debt subject to fixed rate	$ 246
Sempra Mexico [Member] \| Other Long Term Debt, Payable Currently Through March 2032, Variable Rate Two [Member]
Debt Instrument [Line Items]
Effective percentage rate	5.82%
Long-term debt subject to variable rate	$ 37
Sempra Mexico [Member] \| Other Long Term Debt, Payable Currently Through May 2032, Variable Rate One [Member]
Debt Instrument [Line Items]
Weighted average rate	6.33%
Long-term debt subject to variable rate	$ 164
Sempra Mexico [Member] \| Other Long-term Debt, Currently Through January 2048 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 540	540
Stated percentage rate	4.875%
Sempra Mexico [Member] \| Other Long-term Debt, Currently Through July 2028 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 4	0
Variable percentage rate	6.07%
Sempra Renewables [Member] \| Other LongTerm Debt, Variable Rate Loan Payable Currently Through December 2028 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 0	$ 77
Stated percentage rate		3.668%
Variable percentage rate		3.325%
Long-term debt subject to fixed rate		$ 59
Sempra LNG & Midstream [Member] \| Other Long-term Debt, Currently Through October 2026 [Member]
Debt Instrument [Line Items]
Gross long-term debt	$ 21	20
Sempra LNG & Midstream [Member] \| Other Long-term Debt, Currently Through October 2026 [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Stated percentage rate	2.87%
Sempra LNG & Midstream [Member] \| Other Long-term Debt, Currently Through October 2026 [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Stated percentage rate	3.51%
Other Sempra Energy [Member]
Debt Instrument [Line Items]
Long-term debt and capital lease obligations	$ 13,756	9,405
Current portion of long-term debt	(1,589)	(706)
Unamortized discount on long-term debt	(38)	(13)
Unamortized premium on long-term debt	4	4
Unamortized debt issuance costs	(87)	(65)
Long-term debt	12,046	8,625
Otay Mesa VIE [Member]
Debt Instrument [Line Items]
Current portion of long-term debt	(28)	(10)
Otay Mesa VIE [Member] \| San Diego Gas and Electric Company [Member]
Debt Instrument [Line Items]
Current portion of long-term debt	(28)	(10)
Long-term debt	190	284
Otay Mesa VIE [Member] \| San Diego Gas and Electric Company [Member] \| Otay Mesa Energy Center Loan Payable Currently Through April 2019 [Member]
Debt Instrument [Line Items]
Gross long-term debt	0	295
Otay Mesa VIE [Member] \| San Diego Gas and Electric Company [Member] \| Otay Mesa Energy Center Loan Payable 2019 through 2024 [Member]
Debt Instrument [Line Items]
Gross long-term debt	220	$ 0
Notional amount of derivative liability	$ 142
Fixed percentage interest rate	5.2925%

INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables)

12 Months Ended

Dec. 31, 2018

Investments [Abstract]

Schedule Of Equity Method And Other Investments

We provide the carrying values of our investments and earnings (losses) on these investments in the following tables.



EQUITY METHOD AND OTHER INVESTMENT BALANCES
(Dollars in millions)
	Percent ownership
	December 31,				December 31,
	2018		2017		2018		2017
Sempra Texas Utility:
Oncor Holdings⁽¹⁾	100	%	—	%	$	9,652	$	—
Sempra South American Utilities:
Eletrans	50		50		$	17	$	16
Sempra Mexico:
Energía Sierra Juárez⁽²⁾	50		50		43		39
IMG⁽³⁾	40		40		328		221
TAG⁽⁴⁾	50		50		376		364
Sempra Renewables:
Wind:
Auwahi Wind	50		50		38		42
Broken Bow 2 Wind	—		50		—		32
Cedar Creek 2 Wind	50		50		69		72
Flat Ridge 2 Wind⁽⁵⁾	50		50		82		255
Fowler Ridge 2 Wind	50		50		45		44
Mehoopany Wind⁽⁶⁾	50		50		57		89
Solar:
California solar partnership	—		50		—		107
Copper Mountain Solar 2	—		50		—		35
Copper Mountain Solar 3	—		50		—		44
Mesquite Solar 1	—		50		—		81
Other					—		12
Sempra LNG & Midstream:
Cameron LNG JV⁽⁷⁾	50.2		50.2		1,271		997
Parent and other:
RBS Sempra Commodities	49		49		—		67
Total equity method investments					2,326		2,517
Other					11		10
Total other investments					$	2,337	$	2,527


⁽¹⁾	The carrying value of our equity method investment is $2,814 million higher than the underlying equity in the net assets of the investee due to $2,868 million of equity method goodwill and $69 million in basis differences in AOCI, offset by $123 million due to a tax sharing liability to TTI under the tax sharing agreement.


⁽²⁾	The carrying value of our equity method investment is $12 million higher than the underlying equity in the net assets of the investee due to the remeasurement of our retained investment to fair value in 2014.


⁽³⁾	The carrying value of our equity method investment is $5 million higher than the underlying equity in the net assets of the investee due to guarantees, which we discuss below.


⁽⁴⁾	The carrying value of our equity method investment is $130 million higher than the underlying equity in the net assets of the investee due to equity method goodwill.


⁽⁵⁾	The carrying value of our equity method investment is $169 million lower than the underlying equity in the net assets of the investee due to an other-than-temporary impairment recorded in 2018.


⁽⁶⁾	The carrying value of our equity method investment is $31 million lower than the underlying equity in the net assets of the investee due to an other-than-temporary impairment recorded in 2018.


⁽⁷⁾	The carrying value of our equity method investment is $284 million and $237 million higher than the underlying equity in the net assets of the investee at December 31, 2018 and 2017, respectively, primarily due to guarantees, which we discuss below, and interest capitalized on the investment, as the JV has not commenced its planned principal operations.



EARNINGS (LOSSES) FROM EQUITY METHOD INVESTMENTS
(Dollars in millions)
	Years ended December 31,
	2018			2017			2016
Earnings (losses) recorded before income tax⁽¹⁾:
Sempra Renewables:
Wind:
Auwahi Wind	$	3		$	5		$	4
Broken Bow 2 Wind	(2		)	(2		)	(2		)
Cedar Creek 2 Wind	(1		)	(2		)	(2		)
Flat Ridge 2 Wind⁽²⁾	(178		)	(13		)	(7		)
Fowler Ridge 2 Wind	3			4			4
Mehoopany Wind⁽²⁾	(30		)	(1		)	—
Solar:
California solar partnership	8			7			7
Copper Mountain Solar 2	5			5			6
Copper Mountain Solar 3	8			8			8
Mesquite Solar 1	18			18			17
Other	(3		)	—			(1		)
Sempra LNG & Midstream:
Cameron LNG JV	—			5			(2		)
Rockies Express Pipeline	—			—			(26		)
Parent and other:
RBS Sempra Commodities⁽²⁾	(67		)	—			—
	(236		)	34			6
Earnings (losses) recorded net of income tax:
Sempra Texas Utility:
Oncor Holdings	371			—			—
Sempra South American Utilities:
Eletrans	1			4			3
Sempra Mexico:
DEN	—			(13		)	5
Energía Sierra Juárez	2			—			6
IEnova Pipelines	—			—			64
IMG	29			45			—
TAG	9			6			—
	412			42			78
Total	$	176		$	76		$	84


⁽¹⁾	We provide our ETR calculation in Note 8.


⁽²⁾	Losses from equity method investment in 2018 include an other-than-temporary impairment charge, which we discuss below.

Schedule of Summarized Financial Information



SUMMARIZED FINANCIAL INFORMATION – OTHER EQUITY METHOD INVESTMENTS
(Dollars in millions)
	Years ended December 31,
	2018⁽¹⁾			2017⁽²⁾			2016⁽³⁾
Gross revenues	$	727		$	846		$	1,079
Operating expense	(614		)	(590		)	(726		)
Income from operations	113			256			353
Interest expense	(330		)	(217		)	(127		)
Net (loss) income/(Losses) earnings⁽⁴⁾	(33		)	116			252



	At December 31,
	2018⁽¹⁾		2017⁽²⁾
Current assets	$	625	$	974
Noncurrent assets	14,803		14,087
Current liabilities	813		797
Noncurrent liabilities	10,226		9,809


⁽¹⁾	On December 13, 2018, Sempra Renewables sold all its operating solar assets, including its solar equity method investments, and its 50-percent interest in the Broken Bow 2 wind power generation facility to a subsidiary of Con Ed. As of December 13, 2018, the solar equity method investments and Broken Bow 2 are no longer equity method investments.


⁽²⁾	On November 15, 2017, IEnova completed the asset acquisition of PEMEX’s 50-percent interest in DEN, increasing its ownership percentage to 100 percent. As of November 15, 2017, DEN is no longer an equity method investment.


⁽³⁾	On September 26, 2016, IEnova completed the acquisition of PEMEX’s 50-percent interest in IEnova Pipelines, increasing its ownership percentage to 100 percent, and on May 9, 2016, Sempra LNG & Midstream sold its 25-percent interest in Rockies Express. As of the respective transaction dates, IEnova Pipelines and Rockies Express are no longer equity method investments.

⁽⁴⁾

Except for our investments in South America and Mexico, there was no income tax recorded by the entities, as they are primarily domestic partnerships.We provide summarized income statement and balance sheet information for Oncor Holdings in the following table.



SUMMARIZED FINANCIAL INFORMATION – ONCOR HOLDINGS
(Dollars in millions)
	March 9 - December 31, 2018
Gross revenues	$	3,347
Operating expense	(2,434		)
Income from operations	913
Interest expense	(285		)
Income tax expense	(119		)
Net income	455
Noncontrolling interest held by TTI	(94		)
Earnings attributable to Sempra Energy⁽¹⁾	360

	At December 31, 2018
Current assets	$	772
Noncurrent assets	21,980
Current liabilities	2,217
Noncurrent liabilities	11,756

⁽¹⁾

Earnings at Oncor Holdings differ from earnings at the Sempra Texas Utility segment due to amortization of a tax sharing liability associated with a tax sharing arrangement and basis differences in AOCI.

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - PRINCIPLES OF CONSOLIDATION (Details)
$ in Millions

12 Months Ended

Dec. 31, 2018

USD ($)

segment

Dec. 31, 2017

USD ($)

Dec. 31, 2016

USD ($)

Error Corrections and Prior Period Adjustments Restatement [Line Items]

Equity earnings, before income tax

$ (236)

$ 34

$ 6

Income before income taxes and equity earnings of unconsolidated entities

1,046

1,551

^[1]

1,824

^[1]

Equity earnings

$ 176

^[1]

Segment Reporting, Disclosure of Other Information about Entity's Reportable Segments [Abstract]

Number of reportable segments | segment

As previously reported [Member]

Error Corrections and Prior Period Adjustments Restatement [Line Items]

Equity earnings, before income tax

Income before income taxes and equity earnings of unconsolidated entities

1,585

1,830

Equity earnings, net of income tax

$ 42

$ 78

[1]	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1.

- Definition

This item represents the entity's proportionate share for the period of the net income (loss) of its investee (such as unconsolidated subsidiaries and joint ventures) to which the equity method of accounting is applied. This item includes income or expense related to stock-based compensation based on the investor's grant of stock to employees of an equity method investee.

+ References + Details

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Beginning Balance	$ 2,877	$ 2,553
Accretion expense	121	109
Liabilities incurred	7	34
Deconsolidation and reclassification	(61)	0
Payments	(42)	(63)
Revisions	71	244
Ending Balance	2,973	2,877
San Diego Gas and Electric Company [Member]
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Beginning Balance	839	830
Accretion expense	39	39
Liabilities incurred	0	17
Deconsolidation and reclassification	0	0
Payments	(39)	(61)
Revisions	35	14
Ending Balance	874	839
Southern California Gas Company [Member]
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Beginning Balance	1,953	1,659
Accretion expense	78	66
Liabilities incurred	0	0
Deconsolidation and reclassification	0	0
Payments	(3)	(2)
Revisions	35	230
Ending Balance	2,063	$ 1,953
Termoelectrica de Mexicali [Member]
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Reclassified from held for sale	5
Sempra Renewables [Member]
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Reclassified to held for sale	6
Sempra LNG & Midstream [Member]
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Reclassified to held for sale	8
Sempra Renewables [Member] \| Disposal Group Disposed of by Sale [Member]
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Deconsolidation and reclassification	$ 52

EMPLOYEE BENEFIT PLANS - PLAN ASSETS (Details)	12 Months Ended
EMPLOYEE BENEFIT PLANS - PLAN ASSETS (Details)	Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]
Expected return on plan assets	7.00%
Domestic Equity [Member]
Defined Benefit Plan Disclosure [Line Items]
Targeted plan asset allocations	35.00%
International Equity [Member]
Defined Benefit Plan Disclosure [Line Items]
Targeted plan asset allocations	24.00%
Long Credit [Member]
Defined Benefit Plan Disclosure [Line Items]
Targeted plan asset allocations	18.00%
Ultra-long duration government securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Targeted plan asset allocations	8.00%
Defined Benefit Plan, Real Estate [Member]
Defined Benefit Plan Disclosure [Line Items]
Targeted plan asset allocations	5.00%
Return Seeking Credit [Member]
Defined Benefit Plan Disclosure [Line Items]
Targeted plan asset allocations	5.00%
Real Assets [Member]
Defined Benefit Plan Disclosure [Line Items]
Targeted plan asset allocations	5.00%
Return Seeking Assets [Member]
Defined Benefit Plan Disclosure [Line Items]
Asset allocations	74.00%
Risk Mitigating Assets [Member]
Defined Benefit Plan Disclosure [Line Items]
Asset allocations	26.00%
Minimum [Member] \| Return Seeking Assets [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected return on plan assets	7.00%
Minimum [Member] \| Risk Mitigating Assets [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected return on plan assets	3.00%
Maximum [Member] \| Return Seeking Assets [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected return on plan assets	9.00%
Maximum [Member] \| Risk Mitigating Assets [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected return on plan assets	5.00%
Southern California Gas Company [Member] \| Return Seeking Assets [Member]
Defined Benefit Plan Disclosure [Line Items]
Asset allocations	38.00%
Southern California Gas Company [Member] \| Risk Mitigating Assets [Member]
Defined Benefit Plan Disclosure [Line Items]
Asset allocations	62.00%

SEGMENT INFORMATION (Details)
$ in Millions

12 Months Ended

Dec. 31, 2018

USD ($)

segment

Dec. 31, 2017

USD ($)

Dec. 31, 2016

USD ($)

Jun. 25, 2018

Mar. 09, 2018

Segment Reporting Information [Line Items]

Number of reportable segments | segment

Segment Reporting Information, Profit (Loss) [Abstract]

Segment reporting information, Revenue

$ 11,687

$ 11,207

$ 10,183

Segment reporting information, Interest Expense

925

659

^[1]

553

^[1]

Segment reporting information, Interest Income

104

^[1]

Segment reporting information, Depreciation and Amortization

1,549

1,490

1,312

Income tax expense

1,276

^[1]

389

^[1]

Earnings attributable to common shares

924

256

^[1]

1,370

^[1]

Segment Reporting Information, Additional Information [Abstract]

Segment Reporting Information Expenditures For Property Plant and Equipment

3,784

3,949

4,214

Segment reporting information, Assets

60,638

50,454

47,786

Assets, geographical

48,785

39,030

35,028

Entity-Wide Disclosure On Geographic Areas, United States [Member]

Segment Reporting Information, Profit (Loss) [Abstract]

Segment reporting information, Revenue

8,840

8,547

8,004

Segment Reporting Information, Additional Information [Abstract]

Assets, geographical

40,611

31,487

28,351

Entity-Wide Disclosure On Geographic Areas Mexico [Member]

Segment Reporting Information, Profit (Loss) [Abstract]

Segment reporting information, Revenue

1,262

1,093

623

Segment Reporting Information, Additional Information [Abstract]

Assets, geographical

5,800

5,363

4,814

Entity-Wide Disclosure On Geographic Areas, South America [Member]

Segment Reporting Information, Profit (Loss) [Abstract]

Segment reporting information, Revenue

1,585

1,567

1,556

Segment Reporting Information, Additional Information [Abstract]

Assets, geographical

2,374

2,180

1,863

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

Segment Reporting Information, Profit (Loss) [Abstract]

Segment reporting information, Revenue

4,568

4,476

4,253

Segment reporting information, Interest Expense

221

203

195

Segment reporting information, Interest Income

Segment reporting information, Depreciation and Amortization

688

670

646

Income tax expense

173

155

280

Earnings attributable to common shares

669

407

570

Segment Reporting Information, Additional Information [Abstract]

Segment Reporting Information Expenditures For Property Plant and Equipment

1,542

1,555

1,399

Segment reporting information, Assets

19,225

17,844

17,719

Operating Segments [Member] | SoCalGas [Member]

Segment Reporting Information, Profit (Loss) [Abstract]

Segment reporting information, Revenue

3,962

3,785

3,471

Segment reporting information, Interest Expense

115

102

Segment reporting information, Interest Income

Segment reporting information, Depreciation and Amortization

556

515

476

Income tax expense

160

143

Earnings attributable to common shares

400

396

349

Segment Reporting Information, Additional Information [Abstract]

Segment Reporting Information Expenditures For Property Plant and Equipment

1,538

1,367

1,319

Segment reporting information, Assets

15,389

14,159

13,424

Operating Segments [Member] | Sempra Texas Utility [Member]

Segment Reporting Information, Profit (Loss) [Abstract]

Earnings attributable to common shares

371

Segment Reporting Information, Additional Information [Abstract]

Segment reporting information, Assets

9,652

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

Segment Reporting Information, Profit (Loss) [Abstract]

Segment reporting information, Revenue

1,585

1,567

1,556

Segment reporting information, Interest Expense

Segment reporting information, Interest Income

Segment reporting information, Depreciation and Amortization

Income tax expense

Earnings attributable to common shares

199

186

156

Segment Reporting Information, Additional Information [Abstract]

Segment Reporting Information Expenditures For Property Plant and Equipment

240

244

194

Segment reporting information, Assets

4,107

4,060

3,591

Operating Segments [Member] | Sempra Mexico [Member]

Segment Reporting Information, Profit (Loss) [Abstract]

Segment reporting information, Revenue

1,376

1,196

725

Segment reporting information, Interest Expense

120

Segment reporting information, Interest Income

Segment reporting information, Depreciation and Amortization

175

156

Income tax expense

185

227

188

Earnings attributable to common shares

237

169

463

Segment Reporting Information, Additional Information [Abstract]

Segment Reporting Information Expenditures For Property Plant and Equipment

368

248

330

Segment reporting information, Assets

9,165

8,554

7,542

Operating Segments [Member] | Sempra Renewables [Member]

Segment Reporting Information, Profit (Loss) [Abstract]

Segment reporting information, Revenue

124

Segment reporting information, Interest Expense

Segment reporting information, Interest Income

Segment reporting information, Depreciation and Amortization

Income tax expense

(226)

(38)

Earnings attributable to common shares

328

252

Segment Reporting Information, Additional Information [Abstract]

Segment Reporting Information Expenditures For Property Plant and Equipment

497

835

Segment reporting information, Assets

2,549

2,898

3,644

Operating Segments [Member] | Sempra LNG & Midstream [Member]

Segment Reporting Information, Profit (Loss) [Abstract]

Segment reporting information, Revenue

472

540

508

Segment reporting information, Interest Expense

Segment reporting information, Interest Income

Segment reporting information, Depreciation and Amortization

Income tax expense

(435)

(119)

(80)

Earnings attributable to common shares

(617)

150

(107)

Segment Reporting Information, Additional Information [Abstract]

Segment Reporting Information Expenditures For Property Plant and Equipment

117

Segment reporting information, Assets

4,060

4,872

5,564

Adjustment and Elimination [Member]

Segment Reporting Information, Profit (Loss) [Abstract]

Segment reporting information, Revenue

(3)

(1)

Intersegment Eliminations [Member]

Segment Reporting Information, Profit (Loss) [Abstract]

Segment reporting information, Revenue

(397)

(450)

(364)

Segment reporting information, Interest Expense

(107)

(119)

Segment reporting information, Interest Income

(73)

(69)

(78)

Segment Reporting Information, Additional Information [Abstract]

Segment reporting information, Assets

(4,240)

(2,848)

(4,173)

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

Segment Reporting Information, Profit (Loss) [Abstract]

Segment reporting information, Revenue

Intersegment Eliminations [Member] | SoCalGas [Member]

Segment Reporting Information, Profit (Loss) [Abstract]

Segment reporting information, Revenue

Intersegment Eliminations [Member] | Sempra Mexico [Member]

Segment Reporting Information, Profit (Loss) [Abstract]

Segment reporting information, Revenue

114

103

102

Intersegment Eliminations [Member] | Sempra LNG & Midstream [Member]

Segment Reporting Information, Profit (Loss) [Abstract]

Segment reporting information, Revenue

215

266

180

All Other [Member]

Segment Reporting Information, Profit (Loss) [Abstract]

Segment reporting information, Interest Expense

496

284

282

Segment reporting information, Interest Income

Segment reporting information, Depreciation and Amortization

Income tax expense

(85)

999

(184)

Earnings attributable to common shares

(663)

(1,304)

(116)

Segment Reporting Information, Additional Information [Abstract]

Segment Reporting Information Expenditures For Property Plant and Equipment

Segment reporting information, Assets

$ 731

$ 915

$ 475

Oncor Electric Delivery Company LLC [Member]

Segment Reporting Information [Line Items]

Acquired percentage interest

80.25%

Oncor Holdings Electric Delivery Company LLC [Member] | Oncor Electric Delivery Company LLC [Member] | Sempra Texas Utility [Member]

Segment Reporting Information [Line Items]

Ownership interest

80.25%

Disposal Group Held-for-sale [Member] | Bay Gas [Member] | Non-utility Natural gas Storage Assets [Member] | Sempra LNG & Midstream [Member]

Segment Reporting Information [Line Items]

Ownership interest

90.90%

[1]	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1.

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Significant Accounting Policies And Other Financial Data

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATAPRINCIPLES OF CONSOLIDATION

Sempra Energy

SDG&E

SoCalGas

SoCalGas’ common stock is wholly owned by PE, which is a wholly owned subsidiary of Sempra Energy.

In this report, we refer to SDG&E and SoCalGas collectively as the California Utilities.

BASIS OF PRESENTATION

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


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


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


▪	the Financial Statements and related Notes of SoCalGas.

Reclassification on the Consolidated Statements of Operations

We have made a reclassification on the Consolidated Statements of Operations for the years ended December 31, 2017 and 2016 to conform to current year presentation. Line item captions for equity earnings (losses) before income tax and net of income tax have been combined into one line and presented after income tax expense (benefit). This reclassification is intended to treat the presentation of earnings from all equity method investees consistently and simplify the presentation on the statement of operations, while continuing to provide additional detail in the notes to the financial statements. We discuss our equity method

investments further in Note 6. The following table summarizes the financial statement line items that were affected by this reclassification:



SEMPRA ENERGY – RECLASSIFICATION
(Dollars in millions)
	Years ended December 31,
	2017				2016
	As previously presented		As currently presented		As previously presented		As currently presented
Consolidated Statements of Operations:
Equity earnings, before income tax	$	34	$	—	$	6	$	—
Income before income taxes and equity earnings
of certain unconsolidated subsidiaries	1,585		—		1,830		—
Income before income taxes and equity earnings of
unconsolidated entities	—		1,551		—		1,824
Equity earnings, net of income tax	42		—		78		—
Equity earnings	—		76		—		84

Use of Estimates in the Preparation of the Financial Statements

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

Subsequent Events

We evaluated events and transactions that occurred after December 31, 2018 through the date the financial statements were issued, and in the opinion of management, the accompanying statements reflect all adjustments and disclosures necessary for a fair presentation.EFFECTS OF REGULATION

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


▪	the nature of the event giving rise to the assessment;


▪	existing statutes and regulatory code;


▪	legal precedents;


▪	regulatory principles and analogous regulatory actions;


▪	testimony presented in regulatory hearings;


▪	regulatory orders;


▪	a commission-authorized mechanism established for the accumulation of costs;


▪	status of applications for rehearings or state court appeals;


▪	specific approval from a commission; and


▪	historical experience.

We provide information concerning regulatory assets and liabilities in Note 4.


▪	quoted forward prices for commodities;


▪	time value;


▪	current market and contractual prices for the underlying instruments;


▪	volatility factors; and


▪	other relevant economic measures.

in the NDT and benefit plan trusts, and non-exchange-traded derivatives such as interest rate instruments and over-the-counter forwards and options.

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

RESTRICTED CASH

Restricted cash at Sempra Energy was $56 million and $76 million at December 31, 2018 and 2017, respectively, and includes:


▪	for SDG&E, $29 million and $17 million at December 31, 2018 and 2017, respectively, representing funds held by a trustee for Otay Mesa VIE to pay certain operating costs;


▪	for Sempra Mexico, $27 million and $56 million at December 31, 2018 and 2017, respectively, primarily denominated in Mexican pesos, representing funds to pay for rights-of-way, license fees, permits, topographic surveys and other costs pursuant to trust and debt agreements related to pipeline projects;


▪	for Sempra Renewables, $3 million at December 31, 2017, primarily representing funds held in accordance with debt agreements at our wholly owned solar project, which was sold along with certain other non-utility U.S. renewable assets in December 2018. We discuss the sale in Note 5; and


▪	for Sempra South American Utilities, negligible amounts at both December 31, 2018 and 2017.



RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH
(Dollars in millions)
	At December 31,
	2018		2017
Sempra Energy Consolidated:
Cash and cash equivalents	$	190	$	288
Restricted cash, current	35		62
Restricted cash, noncurrent	21		14
Total cash, cash equivalents and restricted cash on the Consolidated Statements of Cash Flows	$	246	$	364
SDG&E:
Cash and cash equivalents	$	8	$	12
Restricted cash, current	11		6
Restricted cash, noncurrent	18		11
Total cash, cash equivalents and restricted cash on the Consolidated Statements of Cash Flows	$	37	$	29

COLLECTION ALLOWANCES



COLLECTION ALLOWANCES
(Dollars in millions)
	Years ended December 31,
	2018			2017			2016
Sempra Energy Consolidated:
Allowances for collection of receivables at January 1	$	33		$	35		$	32
Provisions for uncollectible accounts	14			16			23
Write-offs of uncollectible accounts	(17		)	(18		)	(20		)
Allowances for collection of receivables at December 31	$	30		$	33		$	35
SDG&E:
Allowances for collection of receivables at January 1	$	9		$	8		$	9
Provisions for uncollectible accounts	9			8			6
Write-offs of uncollectible accounts	(7		)	(7		)	(7		)
Allowances for collection of receivables at December 31	$	11		$	9		$	8
SoCalGas:
Allowances for collection of receivables at January 1	$	16		$	21		$	17
Provisions for uncollectible accounts	1			4			14
Write-offs of uncollectible accounts	(7		)	(9		)	(10		)
Allowances for collection of receivables at December 31	$	10		$	16		$	21

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

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

The components of inventories by segment are as follows:



INVENTORY BALANCES AT DECEMBER 31
(Dollars in millions)
	Natural gas				LNG				Materials and supplies				Total
	2018		2017		2018		2017		2018		2017		2018		2017
SDG&E	$	—	$	4	$	—	$	—	$	102	$	101	$	102	$	105
SoCalGas	92		75		—		—		42		49		134		124
Sempra South American Utilities	—		—		—		—		38		30		38		30
Sempra Mexico	—		—		4		7		15		2		19		9
Sempra Renewables	—		—		—		—		—		5		—		5
Sempra LNG & Midstream	3		30		—		4		—		—		3		34
Sempra Energy Consolidated	$	95	$	109	$	4	$	11	$	197	$	187	$	296	$	307

INCOME TAXES

Under the regulatory accounting treatment required for flow-through temporary differences, the California Utilities and Sempra Mexico recognize:


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


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

We provide additional information about income taxes in Note 8.GREENHOUSE GAS ALLOWANCES AND OBLIGATIONSThe California Utilities, Sempra Mexico and Sempra LNG & Midstream are required by California AB 32 to acquire GHG allowances for every metric ton of carbon dioxide equivalent emitted into the atmosphere during electric generation and natural gas transportation. At the California Utilities, many GHG allowances are allocated to us on behalf of our customers at no cost. We record purchased and allocated GHG allowances at the lower of weighted-average cost or market. We measure the compliance obligation, which is based on emissions, at the carrying value of allowances held plus the fair value of additional allowances necessary to satisfy the obligation. The California Utilities balance costs and revenues associated with the GHG program through regulatory balancing accounts. Sempra Mexico and Sempra LNG & Midstream record the cost of GHG obligations in cost of sales. We remove the assets and liabilities from the balance sheets as the allowances are surrendered.RENEWABLE ENERGY CERTIFICATES

Our plant costs include:


▪	labor;


▪	materials and contract services; and


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

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

We discuss assets collateralized as security for certain indebtedness in Note 7.



PROPERTY, PLANT AND EQUIPMENT BY MAJOR FUNCTIONAL CATEGORY
(Dollars in millions)
	PP&E at December 31,				Depreciation rates for years ended December 31,
	2018		2017		2018		2017			2016
SDG&E:
Natural gas operations	$	2,382	$	2,186	2.44	%	2.40	%		2.40	%
Electric distribution	7,462		6,975		3.91		3.92			3.86
Electric transmission⁽¹⁾	6,222		5,626		2.76		2.71			2.66
Electric generation⁽²⁾	2,967		2,435		4.12		4.05			4.00
Other electric⁽³⁾	1,408		1,114		6.43		5.54			5.66
Construction work in progress⁽¹⁾	1,221		1,451		NA		NA			NA
Total SDG&E	21,662		19,787
SoCalGas:
Natural gas operations⁽⁴⁾	17,268		15,759		3.60		3.63			3.64
Other non-utility	34		32		5.39		5.28			6.55
Construction work in progress	836		981		NA		NA			NA
Total SoCalGas	18,138		16,772

					Estimated				Weighted-average
Other operating units and parent⁽⁵⁾:					useful lives				useful life
Land and land rights	429		416		16 to 50 years⁽⁶⁾				30
Machinery and equipment:
Utility electric distribution operations	1,977		1,751		10 to 45 years				41
Generating plants	1,051		2,242		5 to 100 years				30
LNG terminals	1,134		1,133		43 years				43
Pipelines and storage	3,413		4,408		5 to 50 years				41
Other	205		269		1 to 50 years				7
Construction work in progress	684		691		NA				NA
Other⁽⁷⁾	622		639		3 to 80 years				31
	9,515		11,549
Total Sempra Energy Consolidated	$	49,315	$	48,108

⁽¹⁾


⁽²⁾	Includes capital lease assets of $1.3 billion and $757 million at December 31, 2018 and 2017, respectively.


⁽³⁾	Includes capital lease assets of $13 million and $22 million at December 31, 2018 and 2017, respectively.


⁽⁴⁾	Includes capital lease assets of $40 million and $34 million at December 31, 2018 and 2017, respectively.


⁽⁵⁾	Includes $154 million and $145 million at December 31, 2018 and 2017, respectively, of utility plant, primarily pipelines and other distribution assets at Ecogas.


⁽⁶⁾	Estimated useful lives are for land rights.


⁽⁷⁾	Includes capital lease assets of $136 million and associated leasehold improvements of $24 million at both December 31, 2018 and 2017 related to a build-to-suit lease.

Depreciation expense is computed using the straight-line method over the asset’s estimated original composite useful life, the CPUC-prescribed period for the California Utilities, or the remaining term of the site leases, whichever is shortest.



DEPRECIATION EXPENSE
(Dollars in millions)
	Years ended December 31,
	2018		2017		2016
Sempra Energy Consolidated	$	1,528	$	1,422	$	1,236
SDG&E	686		621		583
SoCalGas	553		514		474



ACCUMULATED DEPRECIATION
(Dollars in millions)
	December 31,
	2018		2017
SDG&E:
Accumulated depreciation:
Electric⁽¹⁾	$	4,558	$	4,193
Natural gas	794		756
Total SDG&E	5,352		4,949
SoCalGas:
Accumulated depreciation of natural gas utility plant in service⁽²⁾	5,685		5,352
Accumulated depreciation – other non-utility	14		14
Total SoCalGas	5,699		5,366
Other operating units and parent and other:
Accumulated depreciation – other⁽³⁾	1,125		972
Accumulated depreciation of utility electric distribution operations	343		318
	1,468		1,290
Total Sempra Energy Consolidated	$	12,519	$	11,605


⁽¹⁾	Includes accumulated depreciation for capital lease assets of $48 million and $47 million at December 31, 2018 and 2017, respectively. Includes $252 million at December 31, 2018 related to SDG&E’s 92-percent interest in the Southwest Powerlink transmission line, jointly owned by SDG&E and other utilities.


⁽²⁾	Includes accumulated depreciation for capital lease assets of $37 million and $33 million at December 31, 2018 and 2017, respectively.


⁽³⁾	Includes accumulated depreciation for capital lease assets of $10 million and $7 million and for associated leasehold improvements of $3 million and $2 million at December 31, 2018 and 2017, respectively, related to a build-to-suit lease. Includes $43 million and $39 million at December 31, 2018 and 2017, respectively, of accumulated depreciation for utility plant at Ecogas.

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

Pipeline projects currently under construction by Sempra Mexico that are both subject to certain regulation and meet U.S. GAAP regulatory accounting requirements record the impact of AFUDC.

We capitalize interest costs incurred to finance capital projects. We also capitalize interest on equity method investments that have not commenced planned principal operations.

Interest capitalized and AFUDC are as follows:



CAPITALIZED FINANCING COSTS
(Dollars in millions)
	Years ended December 31,
	2018		2017		2016
Sempra Energy Consolidated	$	202	$	256	$	236
SDG&E	82		85		62
SoCalGas	48		60		55

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill


▪	consideration of market transactions;


▪	future cash flows;


▪	the appropriate risk-adjusted discount rate;


▪	country risk; and


▪	entity risk.

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			Total
Balance at December 31, 2016	$	749		$	1,615		$	2,364
Acquisition of business – measurement period adjustment	—			(13		)	(13		)
Foreign currency translation⁽¹⁾	46			—			46
Balance at December 31, 2017	795			1,602			2,397
Acquisition of business	38			—			38
Foreign currency translation⁽¹⁾	(62		)	—			(62		)
Balance at December 31, 2018	$	771		$	1,602		$	2,373


⁽¹⁾	We record the offset of this fluctuation to OCI.

As we discuss in Note 5, Sempra South American Utilities recorded goodwill of $38 million in connection with its acquisition of CTNG in 2018. In 2017, Sempra Mexico recorded a reduction to goodwill of $13 million for a measurement period adjustment in connection with its acquisition of Ventika.

Other Intangible Assets

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



OTHER INTANGIBLE ASSETS
(Dollars in millions)
	Amortization period (years)	December 31,
	Amortization period (years)	2018			2017
Development rights	50	$	—		$	322
Renewable energy transmission and consumption permit	19	154			154
Storage rights	46	—			138
O&M agreement	23	66			66
Concession permits	Indefinite	50			—
Other	10 years to indefinite	28			18
		298			698
Less accumulated amortization:
Development rights		—			(60		)
Renewable energy transmission and consumption permit		(16		)	(8		)
Storage rights		—			(28		)
O&M agreement		(3		)	—
Other		(7		)	(6		)
		(26		)	(102		)
		$	272		$	596

Other Intangible Assets at December 31, 2018 primarily includes:


▪	a renewable energy transmission and consumption permit previously granted by the CRE that was acquired in connection with the acquisition of the Ventika wind power generation facilities;


▪	a favorable O&M agreement acquired in connection with the acquisition of DEN, which we discuss in Note 5; and


▪	in connection with the CTNG acquisition that we disclose in Note 5, concession permits allowing CTNG to operate transmission lines and substation assets into perpetuity.

In 2018, we recognized an impairment of $369 million for the net carrying value of Other Intangible Assets at Sempra LNG & Midstream, representing development and storage rights related to the natural gas storage facilities of Mississippi Hub and Bay Gas. This impairment is included in Sempra LNG & Midstream’s total net impairment of $1.1 billion, which is recorded in Impairment Losses on Sempra Energy’s Consolidated Statements of Operations, as we discuss in Notes 5 and 12.

Also in 2018, Other Intangible Assets increased due to Sempra Mexico’s acquisition of self-supply permits for development projects. These self-supply permits allow generators to compete directly with the CFE’s retail tariffs and, thus, have access to PPAs with a competitive pricing position. The useful life of a self-supply permit is based on the life of the interconnection agreement with the CFE. Amortization of self-supply permits begins when the project has commenced planned principal operations.

Intangible assets subject to amortization are amortized over their estimated useful lives. Amortization expense for intangible assets in 2018, 2017 and 2016 was $16 million, $18 million and $11 million, respectively. We estimate the amortization expense for the next five years to be $12 million per year.LONG-LIVED ASSETS


▪	significant decreases in the market price of an asset;


▪	a significant adverse change in the extent or manner in which we use an asset or in its physical condition;


▪	a significant adverse change in legal or regulatory factors or in the business climate that could affect the value of an asset;


▪	a current period operating or cash flow loss combined with a history of operating or cash flow losses or a projection of continuing losses associated with the use of a long-lived asset; and


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

SDG&E has a tolling agreement to purchase power generated at OMEC, a 605-MW generating facility. A related agreement provided SDG&E with the option to purchase OMEC at a predetermined price (referred to as the call option). SDG&E’s call option has since expired unexercised. Under the terms of the agreement, on or before April 1, 2019, OMEC LLC can require SDG&E to purchase the power plant on or before October 3, 2019 for $280 million, subject to adjustments (referred to as the put option), or upon earlier termination of the PPA.

The facility owner, OMEC LLC, is a VIE, which we refer to as 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 consolidate Otay Mesa VIE. Otay Mesa VIE’s equity of $100 million at December 31, 2018 and $28 million at December 31, 2017 is included on the Consolidated Balance Sheets in Other Noncontrolling Interests for Sempra Energy and in Noncontrolling Interest for SDG&E.

In October 2018, SDG&E and OMEC LLC signed a resource adequacy capacity agreement for a term that would commence at the expiration of the current tolling agreement in October 2019 and end in August 2024. The capacity agreement was approved by

OMEC LLC’s lenders in December 2018, but is contingent upon receiving final and non-appealable approval from the CPUC before the expiration of the put option on April 1, 2019. If a timely and non-appealable approval of the resource adequacy capacity agreement is received, OMEC LLC will waive its right to exercise the put option and, as a result, SDG&E would no longer consolidate Otay Mesa VIE. SDG&E received CPUC approval of the resource adequacy capacity agreement in February 2019 and the period for appeal expires on March 25, 2019.

OMEC LLC has a loan outstanding of $220 million at December 31, 2018, which we describe in Note 7. SDG&E is not a party to the loan agreement and does not have any additional implicit or explicit financial responsibility to OMEC LLC, nor would SDG&E be required to assume OMEC LLC’s loan under the put option purchase scenario.

The Consolidated Financial Statements of Sempra Energy and SDG&E include the following amounts associated with Otay Mesa VIE. The amounts are net of eliminations of transactions between SDG&E and Otay Mesa VIE. The captions in the tables below correspond to SDG&E’s Consolidated Balance Sheets and Consolidated Statements of Operations.



AMOUNTS ASSOCIATED WITH OTAY MESA VIE
(Dollars in millions)
	December 31,
	2018		2017
Cash and cash equivalents	$	—	$	4
Restricted cash	11		6
Inventories	4		4
Other	2		1
Total current assets	17		15
Restricted cash	18		11
Property, plant and equipment, net	295		321
Total assets	$	330	$	347

Current portion of long-term debt	$	28	$	10
Fixed-price contracts and other derivatives	1		10
Other	3		5
Total current liabilities	32		25
Long-term debt	190		284
Fixed-price contracts and other derivatives	—		3
Deferred credits and other	8		7
Noncontrolling interest	100		28
Total liabilities and equity	$	330	$	347



	Years ended December 31,
	2018			2017			2016
Operating expenses
Cost of electric fuel and purchased power	$	(75	)	$	(79	)	$	(79	)
Operation and maintenance	17			17			29
Depreciation and amortization	30			28			35
Total operating expenses	(28		)	(34		)	(15		)
Operating income	28			34			15
Other income	2			2			—
Interest expense	(23		)	(22		)	(20		)
Income (loss) before income taxes/Net income (loss)	7			14			(5		)
(Earnings) losses attributable to noncontrolling interest	(7		)	(14		)	5
Earnings attributable to common shares	$	—		$	—		$	—

SDG&E has determined that no contracts, other than the one relating to Otay Mesa VIE mentioned above, resulted in SDG&E being the primary beneficiary of a VIE at December 31, 2018. In addition to the tolling agreements described above, other variable interests involve various elements of fuel and power costs, and other components of cash flows 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. 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. 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 could be significant to the financial position and liquidity of SDG&E and Sempra Energy. We provide additional information about PPAs with power plant facilities that are VIEs of which SDG&E is not the primary beneficiary in Note 16.

Sempra Texas Utility

On March 9, 2018, we completed the acquisition of an indirect, 100-percent interest in Oncor Holdings, a VIE that owns an 80.25-percent interest in Oncor. Sempra Energy is not the primary beneficiary of the VIE because of the structural and operational ring-fencing measures in place that prevent us from having the power to direct the significant activities of Oncor Holdings. As a result, we do not consolidate Oncor Holdings and instead account for our ownership interest as an equity method investment. See Notes 5 and 6 for additional information about our equity method investment in Oncor Holdings and restrictions in our ability to influence its activities. Our current maximum exposure to loss from our interest in Oncor Holdings did not exceed the carrying value of our investment, which was $9,652 million at December 31, 2018. Our maximum exposure will fluctuate over time, including as a result of our commitment to contribute approximately $1,025 million in capital (excluding Sempra Energy’s share of approximately $40 million for a management agreement termination fee, as well as other customary transaction costs incurred by InfraREIT that would be borne by Oncor as part of the acquisition) to partially fund Oncor’s acquisition of interests in InfraREIT, which we discuss in Note 5.

Sempra Renewables

Certain of Sempra Renewables’ wind (and previously solar) power generation projects are held by limited liability companies whose members are Sempra Renewables and financial institutions. The financial institutions are noncontrolling tax equity investors to which earnings, tax attributes and cash flows are allocated in accordance with the respective limited liability company agreements. These entities are VIEs and Sempra Energy is the primary beneficiary, generally due to Sempra Energy’s power as the operator of the renewable energy projects to direct the activities that most significantly impact the economic performance of these VIEs. As the primary beneficiary of these tax equity limited liability companies, we consolidate them. In December 2018, $1.1 billion of property, plant and equipment, net, plus other assets and liabilities associated with these entities, was included in the sale of solar assets to a subsidiary of Con Ed, as we discuss in Note 5.

The Consolidated Financial Statements of Sempra Energy include the following amounts associated with these entities.



AMOUNTS ASSOCIATED WITH TAX EQUITY ARRANGEMENTS
(Dollars in millions)
	December 31,
	2018		2017
Cash and cash equivalents	$	7	$	23
Accounts receivable – trade, net	2		5
Inventories	—		1
Other	1		1
Total current assets	10		30
Sundry	—		2
Property, plant and equipment, net	286		1,412
Total assets	296		1,444

Accounts payable	2		42
Other	1		1
Total current liabilities	3		43
Asset retirement obligations	6		40
Deferred income taxes	7		10
Deferred credits and other	—		1
Total liabilities	16		94

Other noncontrolling interests	158		631
Net assets less other noncontrolling interests	$	122	$	719



	Years ended December 31,
	2018			2017			2016
REVENUES
Energy-related businesses	$	92		$	61		$	2
EXPENSES
Operation and maintenance	(16		)	(9		)	(1		)
Depreciation and amortization	(47		)	(32		)	—
Income before income taxes	29			20			1
Income tax expense	(18		)	(4		)	—
Net income	11			16			1
Losses attributable to noncontrolling interests⁽¹⁾	58			23			4
Earnings	$	69		$	39		$	5

⁽¹⁾Net income or loss attributable to NCI is computed using the HLBV method and is not based on ownership percentages.

Sempra LNG & Midstream

Cameron LNG JV is a VIE principally due to contractual provisions that transfer certain risks to customers. Sempra Energy is not the primary beneficiary of the VIE because we do not have the power to direct the most significant activities of Cameron LNG JV, and therefore we account for our investment under the equity method. The carrying value of our investment in Cameron LNG JV, including amounts recognized in AOCI related to interest-rate cash flow hedges at Cameron LNG JV, was $1,271 million at December 31, 2018 and $997 million at December 31, 2017. Our current maximum exposure to loss, which fluctuates over time, includes the carrying value of our investment and guarantees that we discuss in Note 6.

Other Variable Interest Entities

Sempra Energy’s other businesses also enter into arrangements that 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 or project companies that are VIEs because the total equity at risk is not sufficient for the entities to finance their activities without additional subordinated financial support. As the primary beneficiary of these companies, we consolidate them. At December 31, 2018, the assets of these VIEs totaled approximately $286 million and consisted primarily of property, plant and equipment and other long-term assets. Sempra Energy’s exposure to loss is equal to the carrying value of these assets. In all other cases, we have determined that these arrangements are not variable interests in a VIE and therefore are not subject to the U.S. GAAP requirements concerning the consolidation or disclosures of VIEs.ASSET RETIREMENT OBLIGATIONS

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

We have recorded AROs related to various assets, including:

SDG&E and SoCalGas


▪	fuel and storage tanks


▪	natural gas transmission and distribution systems


▪	hazardous waste storage facilities


▪	asbestos-containing construction materials

SDG&E


▪	nuclear power facilities


▪	electric transmission and distribution systems


▪	energy storage systems


▪	power generation plants

SoCalGas


▪	underground natural gas storage facilities and wells

All Other Sempra Energy Businesses


▪	electric transmission and distribution systems


▪	natural gas transportation and distribution systems


▪	power generation plants


▪	LNG terminal


▪	LPG terminal


▪	underground natural gas storage facilities (classified as held for sale at December 31, 2018)

The changes in ARO are as follows:



CHANGES IN ASSET RETIREMENT OBLIGATIONS
(Dollars in millions)
	Sempra Energy Consolidated						SDG&E						SoCalGas
	2018			2017			2018			2017			2018			2017
Balance as of January 1⁽¹⁾	$	2,877		$	2,553		$	839		$	830		$	1,953		$	1,659
Accretion expense	121			109			39			39			78			66
Liabilities incurred	7			34			—			17			—			—
Deconsolidation and reclassification⁽²⁾	(61		)	—			—			—			—			—
Payments	(42		)	(63		)	(39		)	(61		)	(3		)	(2		)
Revisions⁽³⁾	71			244			35			14			35			230
Balance at December 31⁽¹⁾	$	2,973		$	2,877		$	874		$	839		$	2,063		$	1,953


⁽¹⁾	Current portion of the ARO for Sempra Energy Consolidated is included in Other Current Liabilities on the Consolidated Balance Sheets.


⁽²⁾	In 2018, we reclassified $6 million at Sempra Renewables and $8 million at Sempra LNG & Midstream to Liabilities Held for Sale, and $5 million related to TdM from Liabilities Held for Sale, and deconsolidated $52 million at Sempra Renewables, as we discuss in Note 5.

⁽³⁾

In 2017, revised estimates were primarily related to underground natural gas storage facilities and wells at SoCalGas.CONTINGENCIES


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


▪	the amount of the loss can be reasonably estimated.

We do not accrue contingencies that might result in gains. We continuously assess contingencies for litigation claims, environmental remediation and other events.LEGAL FEESLegal fees that are associated with a past event for which a liability has been recorded are accrued when it is probable that fees also will be incurred and amounts are estimable.COMPREHENSIVE INCOME

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


▪	foreign currency translation adjustments;


▪	certain hedging activities;


▪	changes in unamortized net actuarial gain or loss and prior service cost related to pension and other postretirement benefits plans; and


▪	unrealized gains or losses on available-for-sale securities.

The Consolidated Statements of Comprehensive Income (Loss) show the changes in the components of OCI, including the amounts attributable to NCI. The following tables present the changes in AOCI by component and amounts reclassified out of AOCI to net income, excluding amounts attributable to NCI:



CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT⁽¹⁾
(Dollars in millions)
	Foreign currency translation adjustments			Financial instruments				Pension and other postretirement benefits			Total accumulated other comprehensive income (loss)
Sempra Energy Consolidated:
Balance as of December 31, 2015	$	(582	)		$	(137	)	$	(87	)	$	(806	)

OCI before reclassifications	42				(7		)	(15		)	20
Amounts reclassified from AOCI⁽²⁾	13				19			6			38
Net OCI	55				12			(9		)	58
Balance as of December 31, 2016	(527		)		(125		)	(96		)	(748		)

OCI before reclassifications	107				(4		)	—			103
Amounts reclassified from AOCI	—				7			12			19
Net OCI	107				3			12			122
Balance as of December 31, 2017	(420		)		(122		)	(84		)	(626		)
Cumulative-effect adjustment from change in accounting principle⁽³⁾	—				(3		)	—			(3		)

OCI before reclassifications	(144		)		40			(52		)	(156		)
Amounts reclassified from AOCI	—				3			18			21
Net OCI	(144		)		43			(34		)	(135		)
Balance as of December 31, 2018	$	(564	)		$	(82	)	$	(118	)	$	(764	)
SDG&E:
Balance as of December 31, 2015								$	(8	)	$	(8	)

OCI before reclassifications								(1		)	(1		)
Amounts reclassified from AOCI								1			1
Net OCI								—			—
Balance as of December 31, 2016								(8		)	(8		)

OCI before reclassifications								(1		)	(1		)
Amounts reclassified from AOCI								1			1
Net OCI								—			—
Balance as of December 31, 2017								(8		)	(8		)

OCI before reclassifications								(6		)	(6		)
Amounts reclassified from AOCI								4			4
Net OCI								(2		)	(2		)
Balance as of December 31, 2018								$	(10	)	$	(10	)
SoCalGas:
Balance as of December 31, 2015					$	(14	)	$	(5	)	$	(19	)

OCI before reclassifications					—			(4		)	(4		)
Amounts reclassified from AOCI					1			—			1
Net OCI					1			(4		)	(3		)
Balance as of December 31, 2016					(13		)	(9		)	(22		)

Amounts reclassified from AOCI					—			1			1
Net OCI					—			1			1
Balance as of December 31, 2017					(13		)	(8		)	(21		)

OCI before reclassifications					—			(1		)	(1		)
Amounts reclassified from AOCI					1			1			2
Net OCI					1			—			1
Balance as of December 31, 2018					$	(12	)	$	(8	)	$	(20	)


⁽¹⁾	All amounts are net of income tax, if subject to tax, and exclude NCI.


⁽²⁾	Total AOCI includes $20 million associated with the October 2016 sale of NCI, discussed below in “Sale of Noncontrolling Interests – Sempra Mexico – Follow-On Offerings,” which does not impact the Consolidated Statement of Comprehensive Income.


⁽³⁾	Represents impact from adoption of ASU 2017-12, which we discuss in Note 2.



RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
(Dollars in millions)
Details about accumulated other comprehensive income (loss) components	Amounts reclassified from accumulated other comprehensive income (loss)									Affected line item on Consolidated Statements of Operations
	Years ended December 31,
	2018			2017			2016
Sempra Energy Consolidated:
Financial instruments:
Interest rate and foreign exchange instruments⁽¹⁾	$	—		$	(4	)	$	17		Interest Expense
	(2		)	—			—			Other Income, Net
Interest rate instruments	9			—			—			Gain on Sale of Assets
Interest rate and foreign exchange instruments	7			20			15			Equity Earnings
Interest rate and foreign exchange instruments	—			—			7			Remeasurement of Equity Method Investment
Foreign exchange instruments	(1		)	(2		)	—			Revenues: Energy-Related Businesses
Commodity contracts not subject to rate recovery	—			9			(6		)	Revenues: Energy-Related Businesses
Total before income tax	13			23			33
	(4		)	(6		)	(6		)	Income Tax Expense
Net of income tax	9			17			27
	(6		)	(10		)	(15		)	Earnings Attributable to Noncontrolling Interests
	$	3		$	7		$	12
Pension and other postretirement benefits:
Amortization of actuarial loss⁽²⁾	$	12		$	10		$	10		Other Income, Net
Amortization of prior service cost⁽²⁾	2			1			1			Other Income, Net
Settlements⁽²⁾	12			8			—			Other Income, Net
Total before income tax	26			19			11
	(8		)	(7		)	(5		)	Income Tax Expense
Net of income tax	$	18		$	12		$	6

Total reclassifications for the period, net of tax	$	21		$	19		$	18
SDG&E:
Financial instruments:
Interest rate instruments⁽¹⁾	$	7		$	13		$	12		Interest Expense
	(7		)	(13		)	(12		)	(Earnings) Losses Attributable to Noncontrolling Interest
	$	—		$	—		$	—
Pension and other postretirement benefits:
Amortization of actuarial loss⁽²⁾	$	1		$	1		$	1		Other Income, Net
Settlements⁽²⁾	4			—			—			Other Income, Net
Total before income tax	5			1			1
	(1		)	—			—			Income Tax Expense
Net of income tax	$	4		$	1		$	1

Total reclassifications for the period, net of tax	$	4		$	1		$	1
SoCalGas:
Financial instruments:
Interest rate instruments	$	1		$	—		$	1		Interest Expense
Pension and other postretirement benefits:
Amortization of prior service cost⁽²⁾	$	1		$	1		$	—		Other Income, Net

Total reclassifications for the period, net of tax	$	2		$	1		$	1


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

⁽²⁾

Amounts are included in the computation of net periodic benefit cost (see “Net Periodic Benefit Cost” in Note 9).NONCONTROLLING INTERESTS

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

Sempra Mexico – Share Repurchases

In the fourth quarter of 2018, IEnova repurchased 2,000,000 shares of its outstanding common stock held by NCI for approximately $7 million, resulting in an increase in Sempra Energy’s ownership interest in IEnova from 66.4 percent to 66.5 percent. In February 2019, IEnova repurchased an additional 1,600,000 shares for approximately $6 million.

Sale of Noncontrolling Interests

Sempra Mexico – Follow-On Offerings

On October 13, 2016, IEnova priced a private follow-on offering of its common stock 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, including the issuance of shares pursuant to the exercise of the overallotment options, the aggregate shares of common stock sold in the offerings totaled 380,000,000.

The net proceeds of the offerings 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 debt financing, including the $1.15 billion bridge loan from Sempra Global that was used to finance the IEnova Pipelines acquisition, $100 million in loans from its parent and $250 million of borrowings under its revolving credit facility. Additionally, $50 million of net proceeds was used to partially fund the Ventika acquisition. Remaining proceeds were used to fund capital expenditures and for general corporate purposes. We discuss these acquisitions in Note 5.

All U.S. dollar equivalents presented here are 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. Upon completion of the offerings on October 19, 2016 (including the issuance of shares pursuant to the exercise of the overallotment options), Sempra Energy’s beneficial ownership of IEnova decreased from approximately 81.1 percent to 66.4 percent, which did not result in a change in control. When there are changes in NCI of a subsidiary that do not result in a change of control, any difference between carrying value and fair value related to the change in ownership is recorded as an adjustment to shareholders’ equity. As a result of the offerings, we recorded an increase in Sempra Energy’s shareholders’ equity of $281 million, net of $351 million for our participation in the Mexican Offering, and a $948 million increase in Other Noncontrolling Interests for the sale of IEnova shares to third parties.

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 U.S., 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 U.S. absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable securities laws.

Sempra Renewables – Tax Equity Arrangements

In the fourth quarter of 2017, Sempra Renewables entered into membership interest purchase agreements with financial institutions to form two separate tax equity limited liability companies: one that includes a Sempra Renewables’ portfolio of four solar power generation projects located in Fresno County, California and one for a wind power generation project located in Huron County, Michigan. For the solar power generation projects, Sempra Renewables received $104 million, net of offering costs, in tax equity funding for three of the four phases in the fourth quarter of 2017. Additional funding of $85 million, net of offering costs, for the fourth phase of the tax equity arrangement occurred in April 2018. Under the purchase agreement for the wind power generation project, Sempra Renewables received cash proceeds of $92 million, net of offering costs, and the formation of the tax equity arrangement occurred in December 2017.

In December 2016, Sempra Renewables closed a transaction with a financial institution to form a portfolio tax equity limited liability company that includes three Sempra Renewables solar power generation projects. Also in December 2016, Sempra Renewables closed another transaction with two financial institutions to form a tax equity limited liability company involving a

Sempra Renewables wind power generation project. Sempra Renewables received cash proceeds of $474 million, net of offering costs, for the sale of NCI relating to these transactions.

Sempra Renewables consolidates these entities and reports NCI representing the financial institutions’ respective membership interests in the tax equity arrangements.

The financial institutions are noncontrolling, tax equity investors that are allocated earnings, tax attributes and cash flows in accordance with the respective limited liability company agreements. Sempra Renewables has determined that these tax equity arrangements represent substantive profit-sharing arrangements. Sempra Renewables has further determined that the appropriate method for attributing income and loss to the NCI each period is a balance sheet approach referred to as the HLBV method. Under the HLBV method, the amounts of income and loss attributable to NCI in Sempra Energy’s Consolidated Statements of Operations reflect changes in the amounts the members would hypothetically receive at each balance sheet date under the liquidation provisions of the respective limited liability company agreements, assuming the net assets of these entities were liquidated at recorded amounts, after taking into account any capital transactions, such as contributions or distributions, between the entities and the members.

As we discuss in Note 5, on June 25, 2018 our board of directors approved a plan of sale that included the sale of tax equity investments and projects in development at Sempra Renewables. In December 2018, Sempra Renewables completed the sale of and deconsolidated its interests in all its solar tax equity investments. As a result of the sale, Sempra Renewables recorded a decrease of $486 million in Other Noncontrolling Interests related to the ownership held by NCI on Sempra Energy’s Consolidated Balance Sheets. In February 2019, Sempra Renewables entered into an agreement to sell its remaining wind assets and investments, which includes its wind tax equity investments. We expect to complete the sale in the second quarter of 2019.

Preferred Stock

The preferred stock at SoCalGas is presented at Sempra Energy as NCI. Sempra Energy records charges against income related to NCI for preferred stock dividends declared by SoCalGas. We provide additional information regarding SoCalGas’ preferred stock in Note 13.

Other Noncontrolling Interests



OTHER NONCONTROLLING INTERESTS
(Dollars in millions)
	Percent ownership held by noncontrolling interests				Equity (deficit) held by noncontrolling interests
	December 31,				December 31,
	2018		2017		2018			2017
SDG&E:
Otay Mesa VIE	100	%	100	%	$	100		$	28
Sempra South American Utilities:
Chilquinta Energía subsidiaries⁽¹⁾	19.7 - 43.4		22.9 - 43.4		23			24
Luz del Sur	16.4		16.4		193			189
Tecsur	9.8		9.8		4			4
Sempra Mexico:
IEnova⁽²⁾⁽³⁾	33.5		33.6		1,605			1,532
Sempra Renewables:
Tax equity arrangements – wind⁽⁴⁾	NA		NA		158			181
Tax equity arrangements – solar⁽⁴⁾	—		NA		—			450
PXiSE Energy Solutions, LLC	11.1		—		1			—
Sempra LNG & Midstream:
Bay Gas	9.1		9.1		18			28
Liberty Gas Storage, LLC	24.6		24.6		(12		)	14
Total Sempra Energy					$	2,090		$	2,450


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


⁽²⁾	IEnova has a subsidiary with a 10-percent NCI held by others. The equity held by NCI is negligible at both December 31, 2018 and 2017.


⁽³⁾	IEnova has a subsidiary with a 49-percent NCI held by others. The equity held by NCI is $13 million at December 31, 2018.

⁽⁴⁾

Net income or loss attributable to NCI is computed using the HLBV method and is not based on ownership percentages.REVENUES

See Note 3 for a description of significant accounting policies for revenues.

OTHER COST OF SALES

Other Cost of Sales primarily includes:


▪	pipeline capacity costs, including the permanent release of pipeline capacity in 2016 and the associated recoveries in 2017, at Sempra LNG & Midstream;


▪	pipeline transportation and natural gas marketing costs at Sempra LNG & Midstream;


▪	electric construction services costs at Sempra South American Utilities’ energy-services companies; and


▪	energy management service fees and costs associated with construction performed for and invoiced to third parties at Sempra Mexico.

OPERATION AND MAINTENANCE EXPENSES

Operation and Maintenance includes O&M and general and administrative costs, consisting primarily of personnel costs, purchased materials and services, litigation expense and rent.FOREIGN CURRENCY TRANSLATION

Currency transaction losses in a currency other than the entity’s functional currency were $5 million, $35 million and $1 million for the years ended December 31, 2018, 2017 and 2016, respectively, and are included in Other Income, Net, on the Sempra Energy Consolidated Statements of Operations.TRANSACTIONS WITH AFFILIATES

We summarize amounts due from and to unconsolidated affiliates at Sempra Energy Consolidated, SDG&E and SoCalGas in the following table.



AMOUNTS DUE FROM (TO) UNCONSOLIDATED AFFILIATES
(Dollars in millions)
	December 31,
	2018			2017
Sempra Energy Consolidated:
Total due from various unconsolidated affiliates – current	$	39		$	37

Sempra South American Utilities⁽¹⁾:
Eletrans – 4% Note⁽²⁾	$	43		$	103
Other related party receivables	1			1
Sempra Mexico⁽¹⁾:
IMG – Note due March 15, 2022⁽³⁾	641			487
Energía Sierra Juárez – Note⁽⁴⁾	3			7
Total due from unconsolidated affiliates – noncurrent	$	688		$	598

Total due to various unconsolidated affiliates – current	$	(10	)	$	(7	)

Sempra Mexico⁽¹⁾:
Total due to unconsolidated affiliates – noncurrent – TAG – Note due December 20, 2021⁽⁵⁾	$	(37	)	$	(35	)
SDG&E:
Sempra Energy	$	(43	)	$	(30	)
SoCalGas	(6		)	(4		)
Various affiliates	(12		)	(6		)
Total due to unconsolidated affiliates – current	$	(61	)	$	(40	)

Income taxes due from Sempra Energy⁽⁶⁾	$	5		$	27
SoCalGas:
SDG&E	$	6		$	4
Various affiliates	1			—
Total due from unconsolidated affiliates – current	$	7		$	4

Total due to unconsolidated affiliates – current – Sempra Energy	$	(34	)	$	(35	)

Income taxes due (to) from Sempra Energy⁽⁶⁾	$	(4	)	$	10


⁽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, comprising JVs of Chilquinta Energía.


⁽³⁾	Mexican peso-denominated revolving line of credit for up to 14.2 billion Mexican pesos or approximately $721 million U.S. dollar-equivalent, at a variable interest rate based on the 91-day Interbank Equilibrium Interest Rate plus 220 bps (10.84 percent at December 31, 2018), to finance construction of the natural gas marine pipeline.


⁽⁴⁾	U.S. dollar-denominated loan, at a variable interest rate based on the 30-day LIBOR plus 637.5 bps (8.89 percent at December 31, 2018) with no stated maturity date, to finance the first phase of the Energía Sierra Juárez wind project, which is a joint venture of IEnova.


⁽⁵⁾	U.S. dollar-denominated loan, at a variable interest rate based on 6-month LIBOR plus 290 bps (5.77 percent at December 31, 2018).


⁽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.

The following table summarizes revenues and cost of sales from unconsolidated affiliates.



REVENUES AND COST OF SALES FROM UNCONSOLIDATED AFFILIATES
(Dollars in millions)
	Years ended December 31,
	2018		2017		2016
Revenues:
Sempra Energy Consolidated	$	64	$	43	$	25
SDG&E	5		8		7
SoCalGas	64		74		76
Cost of Sales:
Sempra Energy Consolidated	$	46	$	47	$	72
SDG&E	73		71		64

California Utilities

Sempra Energy, SDG&E and SoCalGas provide certain services to each other and are charged an allocable share of the cost of such services. Also, from time-to-time, SDG&E and SoCalGas may make short-term advances of surplus cash to Sempra Energy at interest rates based on the federal funds effective rate plus a margin of 13 to 20 bps, depending on the loan balance.

SoCalGas provides natural gas transportation and storage services for SDG&E and charges SDG&E for such services monthly. SoCalGas records revenues and SDG&E records a corresponding amount to cost of sales.

SDG&E and SoCalGas charge one another, as well as other Sempra Energy affiliates, for shared asset depreciation. SoCalGas and SDG&E record revenues and the affiliates record corresponding amounts to O&M.

The natural gas supply for SDG&E’s and SoCalGas’ core natural gas customers is purchased by SoCalGas as a combined procurement portfolio managed by SoCalGas. Core customers are primarily residential and small commercial and industrial customers. This core gas procurement function is considered a shared service; therefore, revenues and costs related to SDG&E are presented net in SoCalGas’ Statements of Operations.

SDG&E has a 20-year contract for up to 155 MW of renewable power supplied from the Energía Sierra Juárez wind power generation facility, which, as a lessee, SDG&E accounts for as an operating lease. Energía Sierra Juárez is a 50-percent owned and unconsolidated JV of Sempra Mexico.

Sempra Mexico

Sempra Mexico, through its wholly owned subsidiaries, DEN and IEnova Pipelines, provides operating and maintenance services to TAG, and also provides personnel under an administrative services arrangement.

Sempra Renewables

Sempra Renewables, through its wholly owned subsidiary, Sempra Renewables Services, Inc., provides project administration and operating and maintenance services to certain of its renewable energy unconsolidated JVs.

Sempra LNG & Midstream

Sempra LNG & Midstream provides project administration and operating and maintenance services to Cameron LNG JV, and also provides personnel under an administrative services arrangement. Sempra LNG & Midstream has an agreement to provide transportation services to Cameron LNG JV for capacity on the Cameron Interstate Pipeline.

Sempra LNG & Midstream has an agreement with Rockies Express for capacity on REX. We sold our 25-percent interest in Rockies Express in March 2016, at which time Rockies Express ceased being an affiliate.

Guarantees

Sempra Energy has provided guarantees to certain of its JVs as we discuss in Note 6.RESTRICTED NET ASSETS

Sempra Energy Consolidated

As we discuss below, the California Utilities and certain other Sempra Energy subsidiaries have restrictions on the amount of funds that can be transferred to Sempra Energy by dividend, advance or loan as a result of conditions imposed by various regulators. Additionally, certain other Sempra Energy subsidiaries are subject to various financial and other covenants and other restrictions contained in debt and credit agreements (described in Note 7) and in other agreements that limit the amount of funds that can be transferred to Sempra Energy. At December 31, 2018, Sempra Energy was in compliance with all covenants related to its debt agreements.

At December 31, 2018, the amount of restricted net assets of consolidated entities of Sempra Energy, including the California Utilities discussed below, that may not be distributed to Sempra Energy in the form of a loan or dividend is $9.3 billion. Additionally, the amount of restricted net assets of our unconsolidated entities is $18.6 billion. Although the restrictions cap the amount of funding that the various operating subsidiaries can provide to Sempra Energy, we do not believe these restrictions will have a significant impact on our ability to access cash to pay dividends and fund operating needs.

As we discuss in Note 6, $332 million of Sempra Energy’s consolidated retained earnings represents undistributed earnings of equity method investments at December 31, 2018.

California Utilities

The CPUC’s regulation of the California Utilities’ capital structures limits the amounts available for dividends and loans to Sempra Energy. At December 31, 2018, Sempra Energy could have received combined loans and dividends of approximately $552 million from SDG&E and approximately $618 million from SoCalGas.

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


▪	The CPUC requires that SDG&E’s and SoCalGas’ common equity ratios be no lower than one percentage point below the CPUC-authorized percentage of each entity’s authorized capital structure. The authorized percentage at December 31, 2018 is 52 percent at both SDG&E and SoCalGas.


▪	The FERC requires SDG&E to maintain a common equity ratio of 30 percent or above.


▪	The California Utilities have a combined revolving credit line that requires each utility to maintain a ratio of consolidated indebtedness to consolidated capitalization (as defined in the agreement) of no more than 65 percent, as we discuss in Note 7.

Based on these restrictions, at December 31, 2018, SDG&E’s restricted net assets were $5.5 billion and SoCalGas’ restricted net assets were $3.6 billion, which could not be transferred to Sempra Energy.

Sempra Texas Utility

Sempra Texas Utility owns an indirect, 100-percent interest in Oncor Holdings, which owns an 80.25-percent interest in Oncor. As we discuss in Note 6, we account for our investment in Oncor Holdings under the equity method. Significant restrictions at Oncor include:


▪	Oncor may not pay any dividends or make any other distributions (except for contractual tax payments) if a majority of its independent directors or a minority member director determines that it is in the best interests of Oncor to retain such amounts to meet expected future requirements.

▪

At all times, Oncor will remain in compliance with the debt-to-equity ratio established by the PUCT for ratemaking purposes, and Oncor will not pay dividends or other distributions (except for contractual tax payments), if that payment would cause its debt-to-equity ratio to exceed the ratio approved by the PUCT. The PUCT authorized debt-to-equity ratio at December 31, 2018 is 57.5 percent debt to 42.5 percent equity.


▪	If the credit rating on Oncor’s senior secured debt by any of the three major credit rating agencies falls below BBB (or the equivalent), Oncor will suspend dividends and other distributions (except for contractual tax payments), unless otherwise allowed by the PUCT. At December 31, 2018, all of Oncor’s senior secured ratings were above BBB.


▪	Oncor has a revolving credit line and term loan credit agreement that requires it to maintain a consolidated senior debt-to-capitalization ratio of no more than 65 percent and observe certain customary reporting requirements and other affirmative covenants. At December 31, 2018, Oncor was in compliance with this and all other covenants.

Based on these restrictions, at December 31, 2018, Oncor’s restricted net assets were $9.7 billion, which could not be transferred to Sempra Energy.

Sempra South American Utilities

At Sempra South American Utilities, Peru requires domestic corporations to maintain minimum legal reserves as a percentage of capital stock, resulting in restricted net assets of $35 million at Luz del Sur at December 31, 2018.

Sempra Mexico

Significant restrictions at Sempra Mexico include:


▪	Mexico requires domestic corporations to maintain minimum legal reserves as a percentage of capital stock, resulting in restricted net assets of $153 million at Sempra Energy’s consolidated Mexican subsidiaries at December 31, 2018.


▪	Wholly owned IEnova Pipelines has a long-term debt agreement that requires it to maintain a reserve account to pay the projects’ debt. Under this restriction, net assets totaling $10 million are restricted at December 31, 2018.

▪

Wholly owned Ventika has long-term debt agreements that require it to maintain reserve accounts to pay the projects’ debt. The debt agreements may limit the project companies’ ability to incur liens, incur additional indebtedness, make investments, pay cash dividends and undertake certain additional actions. Under these restrictions, net assets totaling $14 million are restricted at December 31, 2018.

▪

Energía Sierra Juárez, a 50-percent owned and unconsolidated JV of Sempra Mexico, has long-term debt agreements that require the establishment and funding of project and reserve accounts to which the proceeds of loans, letter of credit borrowings, project revenues and other amounts are deposited and applied in accordance with the debt agreements. The long-term debt agreements also limit the JV’s ability to incur liens, incur additional indebtedness, make acquisitions and undertake certain actions. Under these restrictions, net assets totaling $14 million are restricted at December 31, 2018.


▪	TAG, a 50-percent owned and unconsolidated JV of Sempra Mexico, has a long-term debt agreement that requires it to maintain a reserve account to pay the projects’ debt. Under these restrictions, net assets totaling $89 million are restricted at December 31, 2018.

Sempra Renewables

Sempra Renewables has 50-percent owned and unconsolidated wind JVs, which have debt agreements that require each JV to maintain reserve accounts in order to pay the projects’ debt service and O&M requirements. We discuss Sempra Energy guarantees associated with these requirements in Note 6. At December 31, 2018, as a result of these requirements, there were total restricted net assets at these JVs of approximately $122 million.

Sempra LNG & Midstream

Sempra LNG & Midstream has an equity method investment in Cameron LNG JV, which has debt agreements that require the establishment and funding of project accounts to which the proceeds of loans, project revenues and other amounts are deposited and applied in accordance with the debt agreements. The debt agreements require the JV to maintain reserve accounts in order to pay the project debt service, and also contain restrictions related to the payment of dividends and other distributions to the members of the JV. We discuss Sempra Energy guarantees associated with Cameron LNG JV’s debt agreements in Note 6. Under these restrictions, net assets of Cameron LNG JV of approximately $8.7 billion are restricted at December 31, 2018.OTHER INCOME, NET

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



OTHER INCOME, NET
(Dollars in millions)
	Years ended December 31,
	2018			2017⁽¹⁾			2016⁽¹⁾
Sempra Energy Consolidated:
Allowance for equity funds used during construction	$	98		$	168		$	116
Investment (losses) gains⁽²⁾	(6		)	56			23
Gains (losses) on interest rate and foreign exchange instruments, net	7			47			(32		)
Foreign currency transaction losses⁽³⁾	(5		)	(35		)	(1		)
Non-service component of net periodic benefit (cost) credit	(37		)	(21		)	6
Electrical infrastructure relocation income	7			3			10
Interest on regulatory balancing accounts, net	2			3			4
Sundry, net	6			12			12
Total	$	72		$	233		$	138
SDG&E:
Allowance for equity funds used during construction	$	61		$	63		$	46
Non-service component of net periodic benefit (cost) credit	(6		)	4			14
Interest on regulatory balancing accounts, net	4			3			3
Sundry, net	(3		)	—			1
Total	$	56		$	70		$	64
SoCalGas:
Allowance for equity funds used during construction	$	36		$	44		$	40
Non-service component of net periodic benefit (cost) credit	(10		)	(5		)	6
Interest on regulatory balancing accounts, net	(2		)	—			1
Sundry, net	(9		)	(8		)	(9		)
Total	$	15		$	31		$	38


⁽¹⁾	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2.


⁽²⁾	Represents investment (losses) gains on dedicated assets in support of our executive retirement and deferred compensation plans. These amounts are partially offset by corresponding changes in compensation expense related to the plans, recorded in O&M on the Consolidated Statements of Operations.

⁽³⁾

DEBT AND CREDIT FACILITIES (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Schedule of Line of Credit Facilities



CREDIT FACILITIES IN SOUTH AMERICA AND MEXICO
(U.S. dollar equivalent in millions)
			At December 31, 2018
		Denominated in	Total facility		Amount outstanding				Available unused credit
Sempra South American Utilities⁽¹⁾:
	Peru⁽²⁾	Peruvian sol	$	534	$	(182	)	⁽³⁾	$	352
	Chile	Chilean peso	115		—				115
Sempra Mexico:
	IEnova⁽⁴⁾	U.S. dollar	1,170		(808		)		362
Total			$	1,819	$	(990	)		$	829


¹⁾	The credit facilities were entered into to finance working capital and for general corporate purposes and expire between 2019 and 2021.


²⁾	The Peruvian facilities require a debt to equity ratio of no more than 170 percent, with which we were in compliance at December 31, 2018.


³⁾	Includes bank guarantees of $18 million.


⁴⁾	In February 2019, IEnova revised the terms of its five-year revolving credit facility by increasing the amount available under the facility from $1.17 billion to $1.5 billion, extending the expiration of the facility from August 2020 to February 2024 and increasing the syndicate of lenders from eight to 10.



PRIMARY U.S. COMMITTED LINES OF CREDIT
(Dollars in millions)
		At December 31, 2018
		Total facility			Commercial paper outstanding⁽¹⁾			Adjustment for combined limit			Available unused credit
Sempra Energy⁽²⁾		$	1,250		$	—		$	—		$	1,250
Sempra Global⁽³⁾		3,185			(669		)	—			2,516
California Utilities⁽⁴⁾:
	SDG&E	750			(291		)	(6		)	453
	SoCalGas	750			(256		)	(41		)	453
	Less: subject to a combined limit of $1 billion for both utilities	(500		)	—			47			(453		)
		1,000			(547		)	—			453
Total		$	5,435		$	(1,216	)	$	—		$	4,219


⁽¹⁾	Because the commercial paper programs are supported by these lines, we reflect the amount of commercial paper outstanding as a reduction to the available unused credit.


⁽²⁾	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. No letters of credit were outstanding at December 31, 2018.


⁽³⁾	Sempra Energy guarantees Sempra Global’s obligations under the credit facility.


⁽⁴⁾	The facility 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. No letters of credit were outstanding at December 31, 2018.

Schedule Of Long-term Debt

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



LONG-TERM DEBT
(Dollars in millions)
	December 31,
	2018			2017
SDG&E
First mortgage bonds (collateralized by plant assets):
1.65% July 1, 2018⁽¹⁾	$	—		$	161
3% August 15, 2021	350			350
1.914% payable 2015 through February 2022	125			161
3.6% September 1, 2023	450			450
2.5% May 15, 2026	500			500
6% June 1, 2026	250			250
5.875% January and February 2034⁽¹⁾	176			176
5.35% May 15, 2035	250			250
6.125% September 15, 2037	250			250
4% May 1, 2039⁽¹⁾	75			75
6% June 1, 2039	300			300
5.35% May 15, 2040	250			250
4.5% August 15, 2040	500			500
3.95% November 15, 2041	250			250
4.3% April 1, 2042	250			250
3.75% June 1, 2047	400			400
4.15% May 15, 2048	400			—
	4,776			4,573
Other long-term debt:
OMEC LLC variable-rate loan (5.2925% after floating-to-fixed rate swaps effective 2007),
payable 2013 through April 2019 (collateralized by OMEC plant assets)	—			295
OMEC LLC variable-rate loan (4.7896% at December 31, 2018 except for $142 at 5.2925%
after floating-to-fixed rate swaps through April 1, 2019), payable 2019 through 2024
(collateralized by OMEC plant assets)	220			—

Capital lease obligations:
Purchased-power contracts	1,270			731
Other	2			1
	1,492			1,027
	6,268			5,600
Current portion of long-term debt	(81		)	(220		)
Unamortized discount on long-term debt	(12		)	(11		)
Unamortized debt issuance costs	(37		)	(34		)
Total SDG&E	6,138			5,335

SoCalGas
First mortgage bonds (collateralized by plant assets):
5.45% April 15, 2018	—			250
1.55% June 15, 2018	—			250
3.15% September 15, 2024	500			500
3.2% June 15, 2025	350			350
2.6% June 15, 2026	500			500
5.75% November 15, 2035	250			250
5.125% November 15, 2040	300			300
3.75% September 15, 2042	350			350
4.45% March 15, 2044	250			250
4.125% June 1, 2048	400			—
4.3% January 15, 2049	550			—
	3,450			3,000
Other long-term debt (uncollateralized):
1.875% Notes payable 2016 through May 2026⁽¹⁾	4			4
5.67% Notes January 18, 2028	5			5
Capital lease obligations	3			1
	12			10
	3,462			3,010
Current portion of long-term debt	(3		)	(501		)
Unamortized discount on long-term debt	(6		)	(7		)
Unamortized debt issuance costs	(26		)	(17		)
Total SoCalGas	3,427			2,485



LONG-TERM DEBT (CONTINUED)
(Dollars in millions)
	December 31,
	2018			2017
Sempra Energy
Other long-term debt (uncollateralized):
6.15% Notes June 15, 2018	—			500
9.8% Notes February 15, 2019	500			500
Notes at variable rates (2.69% at December 31, 2018) July 15, 2019	500			—
1.625% Notes October 7, 2019	500			500
2.4% Notes February 1, 2020	500			—
2.4% Notes March 15, 2020	500			500
2.85% Notes November 15, 2020	400			400
Notes at variable rates (2.94% at December 31, 2018) January 15, 2021⁽¹⁾	700			—
Notes at variable rates (3.24% at December 31, 2018) March 15, 2021	850			850
2.875% Notes October 1, 2022	500			500
2.9% Notes February 1, 2023	500			—
4.05% Notes December 1, 2023	500			500
3.55% Notes June 15, 2024	500			500
3.75% Notes November 15, 2025	350			350
3.25% Notes June 15, 2027	750			750
3.4% Notes February 1, 2028	1,000			—
3.8% Notes February 1, 2038	1,000			—
6% Notes October 15, 2039	750			750
4% Notes February 1, 2048	800			—
Fair value adjustments for interest rate swaps, net	—			(1		)
Build-to-suit lease⁽²⁾	138			138
Sempra South American Utilities
Other long-term debt (uncollateralized):
Chilquinta Energía – 4.25% Series B Bonds October 30, 2030	186			205
Luz del Sur
Bank loans 4.3% to 5.7% payable 2017 through December 2021	105			53
Corporate bonds at 4.75% to 8.75% payable 2014 through September 2029	432			415
Other bonds at 3.77% to 4.61% payable 2020 through May 2022	4			6
Capital lease obligations	6			6
Sempra Mexico
Other long-term debt (uncollateralized unless otherwise noted):
Notes February 8, 2018 at variable rates (2.66% after floating-to-fixed rate cross-currency
swaps effective 2013)	—			66
6.3% Notes February 2, 2023 (4.12% after cross-currency swap)	198			198
Notes at variable rates (4.88% after floating-to-fixed rate swaps effective 2014),
payable 2016 through December 2026, collateralized by plant assets	275			314
3.75% Notes January 14, 2028	300			300
Bank loans including $246 at a weighted-average fixed rate of 6.67%, $164 at variable rates
(weighted-average rate of 6.33% after floating-to-fixed rate swaps effective 2014) and $37 at variable
rates (5.82% at December 31, 2018), payable 2016 through March 2032, collateralized by plant assets	447			468
4.875% Notes January 14, 2048	540			540
Loan at variables rates (6.07% at December 31, 2018) July 31, 2028	4			—
Sempra Renewables
Other long-term debt (collateralized by project assets):
Loan at variable rates (3.325% at December 31, 2017) payable 2012 through December 2028
except for $59 at 3.668% after floating-to-fixed rate swaps effective June 2012⁽¹⁾	—			77
Sempra LNG & Midstream
Other long-term debt (uncollateralized):
Notes at 2.87% to 3.51% October 1, 2026⁽¹⁾	21			20
	13,756			9,405
Current portion of long-term debt	(1,589		)	(706		)
Unamortized discount on long-term debt	(38		)	(13		)
Unamortized premium on long-term debt	4			4
Unamortized debt issuance costs	(87		)	(65		)
Total other Sempra Energy	12,046			8,625
Total Sempra Energy Consolidated	$	21,611		$	16,445


⁽¹⁾	Callable long-term debt not subject to make-whole provisions.

⁽²⁾

We discuss this lease in Notes 2 and 16.Sempra Energy

On January 12, 2018, we issued the following debt securities and received net proceeds of $4.9 billion (after deducting discounts and debt issuance costs of $68 million):



NOTES ISSUED IN LONG-TERM DEBT OFFERING
(Dollars in millions)
Title of each class of securities	Aggregate principal amount		Maturity	Interest payments
Notes at variable rates⁽¹⁾ due 2019	$	500	July 15, 2019	Quarterly
Notes at variable rates⁽²⁾ due 2021	700		January 15, 2021	Quarterly
2.4% Notes due 2020	500		February 1, 2020	Semi-annually
2.9% Notes due 2023	500		February 1, 2023	Semi-annually
3.4% Notes due 2028	1,000		February 1, 2028	Semi-annually
3.8% Notes due 2038	1,000		February 1, 2038	Semi-annually
4% Notes due 2048	800		February 1, 2048	Semi-annually


⁽¹⁾	Bears interest at a rate per annum equal to the 3-month LIBOR rate, plus 25 bps.

⁽²⁾

Bears interest at a rate per annum equal to the 3-month LIBOR rate, plus 50 bps.The following table shows the detail and maturities of long-term debt outstanding:



LONG-TERM DEBT
(Dollars in millions)
	December 31,
	2018			2017

6.15% Notes June 15, 2018	$	—		$	500
9.8% Notes February 15, 2019	500			500
Notes at variable rates (2.69% at December 31, 2018) July 15, 2019	500			—
1.625% Notes October 7, 2019	500			500
2.4% Notes February 1, 2020	500			—
2.4% Notes March 15, 2020	500			500
2.85% Notes November 15, 2020	400			400
Notes at variable rates (2.94% at December 31, 2018) January 15, 2021⁽¹⁾	700			—
Notes at variable rates (3.24% at December 31, 2018) March 15, 2021	850			850
2.875% Notes October 1, 2022	500			500
2.9% Notes February 1, 2023	500			—
4.05% Notes December 1, 2023	500			500
3.55% Notes June 15, 2024	500			500
3.75% Notes November 15, 2025	350			350
3.25% Notes June 15, 2027	750			750
3.4% Notes February 1, 2028	1,000			—
3.8% Notes February 1, 2038	1,000			—
6% Notes October 15, 2039	750			750
4% Notes February 1, 2048	800			—
Fair value adjustments for interest rate swaps, net	—			(1		)
Build-to-suit lease	138			138
	11,238			6,737
Current portion of long-term debt	(1,498		)	(500		)
Unamortized discount on long-term debt	(38		)	(13		)
Unamortized debt issuance costs	(55		)	(26		)
Total long-term debt	$	9,647		$	6,198

Schedule of Maturities of Long-term Debt



MATURITIES OF LONG-TERM DEBT⁽¹⁾
(Dollars in millions)
	SDG&E		SoCalGas		Other Sempra Energy		Total Sempra Energy Consolidated
2019	$	64	$	—	$	1,590	$	1,654
2020	71		—		1,548		1,619
2021	425		—		1,700		2,125
2022	62		—		620		682
2023	500		—		1,321		1,821
Thereafter	3,874		3,459		6,833		14,166
Total	$	4,996	$	3,459	$	13,612	$	22,067

⁽¹⁾

Excludes capital lease obligations, build-to-suit lease, fair value adjustments for interest rate swaps, discounts, premiums and debt issuance costs.

Schedule Of Callable Long Term Debt

At the option of Sempra Energy, SDG&E and SoCalGas, certain debt at December 31, 2018 is callable subject to premiums:



CALLABLE LONG-TERM DEBT
(Dollars in millions)
	SDG&E		SoCalGas		Other Sempra Energy		Total Sempra Energy Consolidated
Not subject to make-whole provisions	$	251	$	4	$	721	$	976
Subject to make-whole provisions	4,525		3,455		10,274		18,254

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - AFFILIATES REVENUE AND COST OF SALES (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($) MW	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Related Party Transaction [Line Items]
Related party revenue	$ 64	$ 43	$ 25
Related party cost of sales	46	47	72
San Diego Gas and Electric Company [Member]
Related Party Transaction [Line Items]
Related party revenue	5	8	7
Related party cost of sales	73	71	64
Southern California Gas Company [Member]
Related Party Transaction [Line Items]
Related party revenue	$ 64	$ 74	$ 76
Energia Sierra Juarez Wind Project [Member] \| San Diego Gas and Electric Company [Member]
Related Party Transaction [Line Items]
Power purchase agreement term	20 years
Generating capacity (in mw) \| MW	155
Minimum [Member] \| Federal Funds Rate [Member] \| California Utilities [Member]
Related Party Transaction [Line Items]
Variable percentage rate	0.13%
Maximum [Member] \| Federal Funds Rate [Member] \| California Utilities [Member]
Related Party Transaction [Line Items]
Variable percentage rate	0.20%

SIGNIFICANT ACCOUNTING POLICIES AND OTHER FINANCIAL DATA - RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($)
$ in Millions

1 Months Ended

3 Months Ended

12 Months Ended

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Interest expense

$ (925)

$ (659)

^[1]

$ (553)

^[1]

Other income, net

233

^[1]

138

^[1]

Gain on sale of assets

$ 513

524

^[1]

134

^[1]

Equity earnings

176

^[1]

Remeasurement of equity method investment

^[1]

617

^[1]

Energy-related businesses

1,641

1,431

^[1]

922

^[1]

Income before income taxes

1,046

1,551

^[1]

1,824

^[1]

Income tax (expense) benefit

(96)

(1,276)

^[1]

(389)

^[1]

(Earnings) losses attributable to noncontrolling interest

(76)

(94)

^[1]

(148)

^[1]

Earnings attributable to common shares

$ 864

$ 274

$ (561)

$ 347

$ (501)

$ 57

$ 259

$ 441

Reclassification from AOCI, Net of taxes

San Diego Gas and Electric Company [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Interest expense

(221)

(203)

^[1]

(195)

^[1]

Other income, net

^[1]

Income before income taxes

849

576

^[1]

845

^[1]

Income tax (expense) benefit

(173)

(155)

^[1]

(280)

^[1]

(Earnings) losses attributable to noncontrolling interest

$ 3

$ (11)

$ 0

$ 1

$ (9)

$ (4)

$ (2)

(7)

(14)

^[1]

Reclassification from AOCI, Net of taxes

Southern California Gas Company [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Interest expense

(115)

(102)

^[1]

(97)

^[1]

Other income, net

^[1]

Income before income taxes

493

557

^[1]

493

^[1]

Income tax (expense) benefit

(92)

(160)

^[1]

(143)

^[1]

Reclassification from AOCI, Net of taxes

Financial instruments attributable to parent [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Reclassification from AOCI, Net of taxes

Financial instruments attributable to parent [Member] | Southern California Gas Company [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Reclassification from AOCI, Net of taxes

Pension and other postretirement benefits [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Reclassification from AOCI, Net of taxes

Pension and other postretirement benefits [Member] | San Diego Gas and Electric Company [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Reclassification from AOCI, Net of taxes

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

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Reclassification from AOCI, Net of taxes

Reclassification out of Accumulated Other Comprehensive Income [Member] | Financial instruments [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Income before income taxes

Income tax (expense) benefit

(4)

(6)

Net of income tax

Reclassification out of Accumulated Other Comprehensive Income [Member] | Financial instruments [Member] | Interest rate and foreign exchange instruments [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Interest expense

(4)

Other income, net

(2)

Equity earnings

Remeasurement of equity method investment

Reclassification out of Accumulated Other Comprehensive Income [Member] | Financial instruments [Member] | Interest rate instruments [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Gain on sale of assets

Reclassification out of Accumulated Other Comprehensive Income [Member] | Financial instruments [Member] | Interest rate instruments [Member] | San Diego Gas and Electric Company [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Interest expense

Reclassification out of Accumulated Other Comprehensive Income [Member] | Financial instruments [Member] | Foreign exchange instruments [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Energy-related businesses

(1)

(2)

Reclassification out of Accumulated Other Comprehensive Income [Member] | Financial instruments [Member] | Commodity Contracts Not Subject To Rate Recovery [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Energy-related businesses

(6)

Reclassification out of Accumulated Other Comprehensive Income [Member] | Financial instruments attributable to Noncontrolling interests [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

(Earnings) losses attributable to noncontrolling interest

(6)

(10)

(15)

Reclassification out of Accumulated Other Comprehensive Income [Member] | Financial instruments attributable to Noncontrolling interests [Member] | San Diego Gas and Electric Company [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

(Earnings) losses attributable to noncontrolling interest

(7)

(13)

(12)

Reclassification out of Accumulated Other Comprehensive Income [Member] | Financial instruments attributable to parent [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Earnings attributable to common shares

Reclassification out of Accumulated Other Comprehensive Income [Member] | Financial instruments attributable to parent [Member] | San Diego Gas and Electric Company [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Earnings attributable to common shares

Reclassification out of Accumulated Other Comprehensive Income [Member] | Financial instruments attributable to parent [Member] | Interest rate instruments [Member] | Southern California Gas Company [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Interest expense

Reclassification out of Accumulated Other Comprehensive Income [Member] | Amortization of actuarial loss [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Other income, net

Reclassification out of Accumulated Other Comprehensive Income [Member] | Amortization of actuarial loss [Member] | San Diego Gas and Electric Company [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Other income, net

Reclassification out of Accumulated Other Comprehensive Income [Member] | Amortization of prior service cost [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Other income, net

Reclassification out of Accumulated Other Comprehensive Income [Member] | Amortization of prior service cost [Member] | Southern California Gas Company [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Other income, net

Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Settlements Attributable to Parent [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Other income, net

Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Settlements Attributable to Parent [Member] | San Diego Gas and Electric Company [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Other income, net

Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension and other postretirement benefits [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Income before income taxes

Income tax (expense) benefit

(8)

(7)

(5)

Net of income tax

Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension and other postretirement benefits [Member] | San Diego Gas and Electric Company [Member]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Income before income taxes

Income tax (expense) benefit

(1)

Net of income tax

$ 4

$ 1

[1]	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1.

DERIVATIVE FINANCIAL INSTRUMENTS - CONTINGENT FEATURES (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Aggregate fair value of net liability position	$ 16	$ 6
Aggregate fair value of additional collateral	20
San Diego Gas and Electric Company [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Aggregate fair value of net liability position		$ 1
Southern California Gas Company [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Aggregate fair value of net liability position	5
Aggregate fair value of additional collateral	$ 5

SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF PARENT (Policies)

12 Months Ended

Dec. 31, 2018

Condensed Financial Information Disclosure [Abstract]

New Accounting Standards

NEW ACCOUNTING STANDARDS

We describe below recent accounting pronouncements that have had or may have a significant effect on our financial condition, results of operations, cash flows or disclosures.

The following table shows the expected (decrease) increase on our balance sheets at January 1, 2019 from adoption of the lease standard.



EXPECTED IMPACT FROM ADOPTION OF THE LEASE STANDARD
(Dollars in millions)
	Sempra Energy Consolidated			SDG&E		SoCalGas
Other current assets	$	(68	)	$	—	$	—
Property, plant and equipment, net	(147		)	—		—
Right-of-use assets – operating leases	623			130		116
Deferred income taxes	(3		)	—		—
Other current liabilities	81			20		23
Long-term debt	(138		)	—		—
Deferred credits and other	445			110		93
Retained earnings	17			—		—

Upon adoption of ASU 2017-07, our Consolidated Statements of Operations were impacted as follows:



IMPACT FROM ADOPTION OF ASU 2017-07
(Dollars in millions)
	Years ended December 31,
	2017							2016
	As previously reported		Effect of adoption			As adjusted		As previously reported		Effect of adoption			As adjusted
Sempra Energy:
Operation and maintenance	$	3,117	$	(21	)	$	3,096	$	2,970	$	6		$	2,976
Other income, net	254		(21		)	233		132		6			138
SDG&E:
Operation and maintenance	$	1,020	$	4		$	1,024	$	1,048	$	14		$	1,062
Total operating expenses	3,763		4			3,767		3,263		14			3,277
Operating income	713		(4		)	709		990		(14		)	976
Other income, net	66		4			70		50		14			64
SoCalGas:
Operation and maintenance	$	1,479	$	(5	)	$	1,474	$	1,385	$	6		$	1,391
Total operating expenses	3,163		(5		)	3,158		2,914		6			2,920
Operating income	622		5			627		557		(6		)	551
Other income, net	36		(5		)	31		32		6			38

We expect the impact from adoption of ASU 2018-02 on January 1, 2019 to be as follows:


▪	Sempra Energy: increase of $40 million to beginning Retained Earnings, $2 million to noncurrent Regulatory Liabilities and $42 million to Accumulated Other Comprehensive Loss;


▪	SDG&E: increase of $2 million to beginning Retained Earnings and Accumulated Other Comprehensive Loss; and


▪	SoCalGas: increase of $2 million to beginning Retained Earnings, $2 million to noncurrent Regulatory Liabilities and $4 million to Accumulated Other Comprehensive Loss.

The following table shows the expected increase (decrease) from adoption of the lease standard on our balance sheet at January 1, 2019.



EXPECTED IMPACT FROM ADOPTION OF THE LEASE STANDARD
(Dollars in millions)
Right-of-use assets – operating leases	$	191
Deferred income taxes	(3		)
Property, plant and equipment, net⁽¹⁾	(147		)
Other current liabilities	3
Long-term debt	(138		)
Other long-term liabilities	159
Retained earnings⁽²⁾	17


⁽¹⁾	Included in Other Assets.


⁽²⁾	Included in Shareholders’ Equity.



IMPACT FROM ADOPTION OF ASU 2017-07
(Dollars in millions)
	Years ended December 31,
	2017									2016
	As previously reported			Effect of adoption			As adjusted			As previously reported			Effect of adoption			As adjusted
Sempra Energy:
Operation and maintenance	$	(87	)	$	7		$	(80	)	$	(81	)	$	5		$	(76	)
Other income (expense), net	107			(7		)	100			(2		)	(5		)	(7		)

REVENUES

12 Months Ended

Dec. 31, 2018

Revenue from Contract with Customer [Abstract]

REVENUES

The following table disaggregates our revenues from contracts with customers by major service line, market and timing of recognition and provides a reconciliation to total revenues by segment.



DISAGGREGATED REVENUES
(Dollars in millions)
	Year ended December 31, 2018
	SDG&E			SoCalGas		Sempra South American Utilities		Sempra Mexico		Sempra Renewables		Sempra LNG & Midstream		Consolidating adjustments			Sempra Energy Consolidated
By major service line:
Utilities	$	4,788		$	3,577	$	1,507	$	78	$	—	$	—	$	(69	)	$	9,881
Midstream	—			—		—		630		—		224		(138		)	716
Renewables	—			—		—		108		46		2		(2		)	154
Other	—			—		73		203		—		6		(6		)	276
Revenues from contracts with customers	$	4,788		$	3,577	$	1,580	$	1,019	$	46	$	232	$	(215	)	$	11,027

By market:
Electric	$	4,297		$	—	$	1,580	$	308	$	46	$	8	$	(12	)	$	6,227
Gas	491			3,577		—		711		—		224		(203		)	4,800
Revenues from contracts with customers	$	4,788		$	3,577	$	1,580	$	1,019	$	46	$	232	$	(215	)	$	11,027

By timing of recognition:
Over time	$	4,677		$	3,454	$	1,554	$	1,019	$	46	$	210	$	(204	)	$	10,756
Point in time	111			123		26		—		—		22		(11		)	271
Revenues from contracts with customers	$	4,788		$	3,577	$	1,580	$	1,019	$	46	$	232	$	(215	)	$	11,027

Revenues from contracts with customers	$	4,788		$	3,577	$	1,580	$	1,019	$	46	$	232	$	(215	)	$	11,027
Utilities regulatory revenues	(220		)	385		—		—		—		—		—			165
Other revenues	—			—		5		357		78		240		(185		)	495
Total revenues	$	4,568		$	3,962	$	1,585	$	1,376	$	124	$	472	$	(400	)	$	11,687

REVENUES FROM CONTRACTS WITH CUSTOMERS

Utilities Revenues

Utilities revenues represent the majority of our consolidated revenues from contracts with customers and include:

The generation, transmission and distribution of electricity at:


▪	SDG&E


▪	Sempra South American Utilities’ Chilquinta Energía and Luz del Sur

The transmission, distribution and storage of natural gas at:


▪	SDG&E


▪	SoCalGas


▪	Sempra Mexico’s Ecogas

Midstream Revenues

Renewables Revenues

Sempra LNG & Midstream has a contractual agreement to provide scheduling and marketing of renewable power for Sempra Renewables. Invoiced amounts are based on a fixed fee per MWh scheduled.

Other Revenues from Contracts with Customers

Remaining Performance Obligations



REMAINING PERFORMANCE OBLIGATIONS⁽¹⁾
(Dollars in millions)
	Sempra Energy Consolidated		SDG&E
2019	$	540	$	3
2020	534		3
2021	529		3
2022	528		3
2023	516		3
Thereafter	2,813		52
Total revenues to be recognized	$	5,460	$	67


⁽¹⁾	Excludes intercompany transactions.

Contract Balances from Revenues from Contracts with Customers

From time to time, we receive payments in advance of satisfying the performance obligations associated with customer contracts. We defer such revenues as contract liabilities and recognize them in earnings as the performance obligations are satisfied.

Activities within Sempra Energy’s contract liabilities are presented below. There were no contract liability activities at SDG&E or SoCalGas for the year ended December 31, 2018.



CONTRACT LIABILITIES
(Dollars in millions)
Opening balance, January 1, 2018	$	—
Adoption of ASC 606 adjustment	(68		)
Revenue from performance obligations satisfied during reporting period	31
Payments received in advance	(39		)
Closing balance, December 31, 2018⁽¹⁾	$	(76	)


⁽¹⁾	Includes $6 million in Other Current Liabilities, a negligible amount in Liabilities Held for Sale and $70 million in Deferred Credits and Other on the Sempra Energy Consolidated Balance Sheet.

Receivables from Revenues from Contracts with Customers

The table below shows receivable balances associated with revenues from contracts with customers on our Consolidated Balance Sheets.



RECEIVABLES FROM REVENUES FROM CONTRACTS WITH CUSTOMERS
(Dollars in millions)
	December 31, 2018		January 1, 2018
Sempra Energy Consolidated:
Accounts receivable – trade, net	$	1,333	$	1,194
Accounts receivable – other, net	11		10
Due from unconsolidated affiliates – current⁽¹⁾	4		8
Assets held for sale	6		—
Total	$	1,354	$	1,212
SDG&E:
Accounts receivable – trade, net	$	368	$	362
Accounts receivable – other, net	6		3
Due from unconsolidated affiliates – current⁽¹⁾	3		3
Total	$	377	$	368
SoCalGas:
Accounts receivable – trade, net	$	634	$	517
Accounts receivable – other, net	5		7
Total	$	639	$	524


⁽¹⁾	Amount is presented net of amounts due to unconsolidated affiliates on the Consolidated Balance Sheets, when right of offset exists.

REVENUES FROM SOURCES OTHER THAN CONTRACTS WITH CUSTOMERS

Certain of our revenues are derived from sources other than contracts with customers and are accounted for under other accounting standards outside the scope of ASC 606.

Utilities Regulatory Revenues

Alternative Revenue Programs

Other Cost-Based Regulatory Recovery

We discuss balancing accounts and their effects further in Note 4.

Other Revenues

Sempra LNG & Midstream recognizes other revenues from:


▪	fees related to contractual counterparty obligations for non-delivery of LNG cargoes, as described above.

▪

PREFERRED STOCK (Tables)

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Schedule Of Preferred Stock

The following table illustrates the conversion rate per share of each series of preferred stock, subject to certain anti-dilution adjustments.



CONVERSION RATES

Applicable market value per share of our common stock		Conversion rate (number of shares of our common stock to be received upon conversion of each share of mandatory convertible preferred stock)
Series A preferred stock
Greater than $131.075 (which is the threshold appreciation price)		0.7629 shares (approximately equal to $100.00 divided by the threshold appreciation price)
Equal to or less than $131.075 but greater than or equal to $107.00		Between 0.7629 and 0.9345 shares, determined by dividing $100.00 by the applicable market value of our common stock
Less than $107.00 (which is the initial price)		0.9345 shares (approximately equal to $100.00 divided by the initial price)
Series B preferred stock
Greater than $136.50 (which is the threshold appreciation price)		0.7326 shares (approximately equal to $100.00 divided by the threshold appreciation price)
Equal to or less than $136.50 but greater than or equal to $113.75		Between 0.7326 and 0.8791 shares, determined by dividing $100.00 by the applicable market value of our common stock
Less than $113.75 (which is the initial price)		0.8791 shares (approximately equal to $100.00 divided by the initial price)

The table below presents preferred stock outstanding at SoCalGas:



PREFERRED STOCK OUTSTANDING
(Dollars in millions, except per share amounts)
	December 31,
	2018			2017
$25 par value, authorized 1,000,000 shares:
6% Series, 79,011 shares outstanding	$	3		$	3
6% Series A, 783,032 shares outstanding	19			19
SoCalGas - Total preferred stock	22			22
Less: 50,970 shares of the 6% Series outstanding owned by Pacific Enterprises	(2		)	(2		)
Sempra Energy - Total preferred stock of subsidiary	$	20		$	20

INVESTMENTS IN UNCONSOLIDATED ENTITIES - SUMMARY OF INVESTMENTS (Details) - USD ($)
$ in Millions

1 Months Ended

12 Months Ended

Sep. 30, 2018

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Schedule of Equity Method Investments [Line Items]

Equity method investment

$ 9,652

$ 0

Other investments

2,337

2,527

Goodwill

2,373

2,397

$ 2,364

Equity earnings, before income tax

(236)

Equity earnings (losses), net of tax

412

Total equity earnings

176

^[1]

Cameron LNG Holdings [Member]

Schedule of Equity Method Investments [Line Items]

Difference between carrying amount of equity method investment and underlying equity

284

237

R B S Sempra Commodities [Member]

Schedule of Equity Method Investments [Line Items]

Other than temporary impairment

$ 65

Other Equity Method Investments [Member]

Schedule of Equity Method Investments [Line Items]

Other investments

2,326

2,517

Other Equity Method Investments [Member]

Schedule of Equity Method Investments [Line Items]

Other investments

$ 11

$ 10

Sempra Texas Intermediate Holding Company LLC [Member] | Oncor Holdings Electric Delivery Company LLC [Member]

Schedule of Equity Method Investments [Line Items]

Ownership percentage in equity method investee

100.00%

0.00%

Equity method investment

$ 9,652

$ 0

Difference between carrying amount of equity method investment and underlying equity

2,814

Equity method investment, difference between carrying amount and underlying equity, aoci

Equity method investment, difference between carrying amount and underlying equity, tax sharing liability

123

Equity earnings (losses), net of tax

$ 371

$ 0

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

Schedule of Equity Method Investments [Line Items]

Ownership percentage in equity method investee

50.00%

Other investments

$ 17

$ 16

Equity earnings (losses), net of tax

$ 1

$ 4

Sempra Renewables [Member] | California Solar Partnership [Member]

Schedule of Equity Method Investments [Line Items]

Ownership percentage in equity method investee

0.00%

50.00%

Other investments

$ 0

$ 107

Equity earnings, before income tax

$ 8

$ 7

Sempra Renewables [Member] | Copper Mountain Solar 3 [Member]

Schedule of Equity Method Investments [Line Items]

Ownership percentage in equity method investee

0.00%

50.00%

Other investments

$ 0

$ 44

Equity earnings, before income tax

$ 8

Sempra Renewables [Member] | Broken Bow 2 Wind [Member]

Schedule of Equity Method Investments [Line Items]

Ownership percentage in equity method investee

0.00%

50.00%

Other investments

$ 0

$ 32

Equity earnings, before income tax

$ (2)

(2)

Sempra Renewables [Member] | Cedar Creek 2 Wind Farm [Member]

Schedule of Equity Method Investments [Line Items]

Ownership percentage in equity method investee

50.00%

Other investments

$ 69

$ 72

Equity earnings, before income tax

$ (1)

$ (2)

(2)

Sempra Renewables [Member] | Flat Ridge 2 Wind Farm [Member]

Schedule of Equity Method Investments [Line Items]

Ownership percentage in equity method investee

50.00%

Other investments

$ 82

$ 255

Other than temporary impairment in investment

169

Equity earnings, before income tax

$ (178)

$ (13)

(7)

Sempra Renewables [Member] | Fowler Ridge 2 Wind Farm [Member]

Schedule of Equity Method Investments [Line Items]

Ownership percentage in equity method investee

50.00%

Other investments

$ 45

$ 44

Equity earnings, before income tax

$ 3

$ 4

Sempra Renewables [Member] | Mehoopany Wind Farm [Member]

Schedule of Equity Method Investments [Line Items]

Ownership percentage in equity method investee

50.00%

Other investments

$ 57

$ 89

Other than temporary impairment in investment

Equity earnings, before income tax

$ (30)

$ (1)

Sempra Renewables [Member] | Copper Mountain Solar 2 [Member]

Schedule of Equity Method Investments [Line Items]

Ownership percentage in equity method investee

0.00%

50.00%

Other investments

$ 0

$ 35

Equity earnings, before income tax

$ 5

Sempra Renewables [Member] | Mesquite Solar 1 [Member]

Schedule of Equity Method Investments [Line Items]

Ownership percentage in equity method investee

0.00%

50.00%

Other investments

$ 0

$ 81

Equity earnings, before income tax

$ 18

Sempra Renewables [Member] | Auwahi Wind [Member]

Schedule of Equity Method Investments [Line Items]

Ownership percentage in equity method investee

50.00%

Other investments

$ 38

$ 42

Equity earnings, before income tax

Sempra Renewables [Member] | Other Equity Method Investments [Member]

Schedule of Equity Method Investments [Line Items]

Other investments

Equity earnings, before income tax

$ (3)

$ 0

(1)

Sempra LNG & Midstream [Member] | Cameron LNG Holdings [Member]

Schedule of Equity Method Investments [Line Items]

Ownership percentage in equity method investee

50.20%

Other investments

$ 1,271

$ 997

Equity earnings, before income tax

(2)

Sempra LNG & Midstream [Member] | Rockies Express [Member]

Schedule of Equity Method Investments [Line Items]

Equity earnings, before income tax

$ 0

(26)

Sempra Energy and Other [Member] | R B S Sempra Commodities [Member]

Schedule of Equity Method Investments [Line Items]

Ownership percentage in equity method investee

49.00%

Other investments

$ 0

$ 67

Equity earnings, before income tax

(67)

Sempra Mexico [Member] | Ductos Energéticos del Norte [Member]

Schedule of Equity Method Investments [Line Items]

Equity earnings (losses), net of tax

$ 0

$ (13)

Sempra Mexico [Member] | Energia Sierra Juarez Wind Project [Member]

Schedule of Equity Method Investments [Line Items]

Ownership percentage in equity method investee

50.00%

Other investments

$ 43

$ 39

Difference between carrying amount of equity method investment and underlying equity

Equity earnings (losses), net of tax

Sempra Mexico [Member] | IEnova Pipelines [Member]

Schedule of Equity Method Investments [Line Items]

Equity earnings (losses), net of tax

$ 0

Sempra Mexico [Member] | IMG [Member]

Schedule of Equity Method Investments [Line Items]

Ownership percentage in equity method investee

40.00%

Other investments

$ 328

$ 221

Difference between carrying amount of equity method investment and underlying equity

Equity earnings (losses), net of tax

$ 29

$ 45

Sempra Mexico [Member] | TAG [Member]

Schedule of Equity Method Investments [Line Items]

Ownership percentage in equity method investee

50.00%

Other investments

$ 376

$ 364

Difference between carrying amount of equity method investment and underlying equity

130

Equity earnings (losses), net of tax

$ 6

$ 0

Sempra Texas Holdings Corp [Member] | Oncor Holdings Electric Delivery Company LLC [Member]

Schedule of Equity Method Investments [Line Items]

Goodwill

$ 2,868

[1]	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1.

ACQUISTION AND DIVESTITURE ACTIVITY - Sempra Energy (Details) - USD ($) $ / shares in Units, $ in Millions	Oct. 18, 2018	Dec. 18, 2018
Sharyland Holdings, LP [Member]
Business Acquisition [Line Items]
Commitment to invest	$ 1,025
Sempra Texas Utility [Member] \| InfraREIT Acquisition [Member]
Business Acquisition [Line Items]
Consideration transferred	$ 1,275
Share price (USD per share)	$ 21
Management agreement termination fee	$ 40
Debt assumed	$ 945
Sempra Texas Utility [Member] \| Sharyland Holdings, LP [Member]
Business Acquisition [Line Items]
Acquired percentage interest	50.00%
Consideration transferred	$ 98
Sempra Texas Utility [Member] \| InfraREIT [Member] \| InfraREIT Acquisition [Member]
Business Acquisition [Line Items]
Acquired percentage interest	100.00%
Sempra Texas Utility [Member] \| InfraREIT Partners [Member] \| InfraREIT Acquisition [Member]
Business Acquisition [Line Items]
Acquired percentage interest	100.00%
Sempra Texas Utility [Member] \| Sharyland Utilities [Member] \| Sharyland Holdings, LP [Member]
Business Acquisition [Line Items]
Acquired percentage interest	100.00%
Ownership percentage in consolidated entity	50.00%
Disposal Group Held-for-sale [Member] \| Solar Assets and One Wind Generation Facility [Member] \| Sempra Renewables [Member]
Business Acquisition [Line Items]
Proceeds from sale		$ 1,600

DERIVATIVE FINANCIAL INSTRUMENTS - COMMODITY VOLUMES (Details)	12 Months Ended
	Dec. 31, 2018 MWh MMBTU	Dec. 31, 2017 MWh MMBTU
Natural Gas Derivative [Member]
Derivatives, Fair Value [Line Items]
Notional Amount, Energy Measure \| MMBTU	35	46
Electric Energy Derivative [Member]
Derivatives, Fair Value [Line Items]
Notional Amount, Energy Measure	2	3
Congestion Revenue Rights Derivative [Member]
Derivatives, Fair Value [Line Items]
Notional Amount, Energy Measure	52	59
SDG&E [Member] \| Natural Gas Derivative [Member]
Derivatives, Fair Value [Line Items]
Notional Amount, Energy Measure \| MMBTU	33	39
SDG&E [Member] \| Electric Energy Derivative [Member]
Derivatives, Fair Value [Line Items]
Notional Amount, Energy Measure	2	3
SDG&E [Member] \| Congestion Revenue Rights Derivative [Member]
Derivatives, Fair Value [Line Items]
Notional Amount, Energy Measure	52	59

NEW ACCOUNTING STANDARDS - NARRATIVE (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

^[1]

Jan. 01, 2019

Jan. 01, 2018

Dec. 31, 2015

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Cumulative-effect adjustment from change in accounting priniciple

$ (1)

$ 107

Retained earnings

$ 10,104

10,147

Regulatory Liability, Noncurrent

4,016

3,922

Accumulated other comprehensive income (loss)

(764)

(626)

Accounting Standards Update 2016-01 and 2018-03 [Member]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Cumulative-effect adjustment from change in accounting priniciple

$ 1

Accounting Standards Update 2017-12 [Member]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Cumulative-effect adjustment from change in accounting priniciple

$ 3

San Diego Gas and Electric Company [Member]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Cumulative-effect adjustment from change in accounting priniciple

Cost of electric fuel and purchased power

1,370

1,293

^[1]

$ 1,187

Retained earnings

4,687

4,268

Regulatory Liability, Noncurrent

2,404

2,225

Accumulated other comprehensive income (loss)

(10)

(8)

Southern California Gas Company [Member]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Cumulative-effect adjustment from change in accounting priniciple

$ 15

Retained earnings

3,390

3,040

Regulatory Liability, Noncurrent

1,612

1,697

Accumulated other comprehensive income (loss)

(20)

$ (21)

Scenario, Forecast [Member] | Accounting Standards Update 2018-02 [Member]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Retained earnings

$ 40

Regulatory Liability, Noncurrent

Accumulated other comprehensive income (loss)

Scenario, Forecast [Member] | San Diego Gas and Electric Company [Member] | Accounting Standards Update 2018-02 [Member]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Retained earnings

Accumulated other comprehensive income (loss)

Scenario, Forecast [Member] | Southern California Gas Company [Member] | Accounting Standards Update 2018-02 [Member]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Retained earnings

Regulatory Liability, Noncurrent

Accumulated other comprehensive income (loss)

$ 4

Assets Held under Capital Leases [Member]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Cost of electric fuel and purchased power

$ 117

[1]	As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1.

DERIVATIVE FINANCIAL INSTRUMENTS - BALANCE SHEET (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Current assets: Other [Member]
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract]
Net amount presented on balance sheet	$ 80,000,000	$ 47,000,000
Additional margin posted for commodity contracts not subject to rate recovery	19,000,000	2,000,000
Additional margin posted for commodity contracts subject to rate recovery	33,000,000	17,000,000
Total	132,000,000	66,000,000
Other assets: Sundry [Member]
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract]
Net amount presented on balance sheet	235,000,000	105,000,000
Additional margin posted for commodity contracts not subject to rate recovery	0	0
Additional margin posted for commodity contracts subject to rate recovery	0	0
Total	235,000,000	105,000,000
Current liabilities: Other [Member]
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract]
Net amount presented on balance sheet	(70,000,000)	(103,000,000)
Additional margin posted for commodity contracts not subject to rate recovery	0	0
Additional margin posted for commodity contracts subject to rate recovery	0	0
Total	(70,000,000)	(103,000,000)
Deferred credits and other liabilities: Deferred credits and other [Member]
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract]
Net amount presented on balance sheet	(218,000,000)	(281,000,000)
Additional margin posted for commodity contracts not subject to rate recovery	0	0
Additional margin posted for commodity contracts subject to rate recovery	0	0
Total	(218,000,000)	(281,000,000)
Designated as Hedging Instrument [Member] \| Current assets: Other [Member]
Derivative Instruments in Hedges, at Fair Value, Net [Abstract]
Interest rate and foreign exchange instruments	2,000,000	5,000,000
Designated as Hedging Instrument [Member] \| Other assets: Sundry [Member]
Derivative Instruments in Hedges, at Fair Value, Net [Abstract]
Interest rate and foreign exchange instruments	0	2,000,000
Designated as Hedging Instrument [Member] \| Current liabilities: Other [Member]
Derivative Instruments in Hedges, at Fair Value, Net [Abstract]
Interest rate and foreign exchange instruments	(3,000,000)	(51,000,000)
Designated as Hedging Instrument [Member] \| Deferred credits and other liabilities: Deferred credits and other [Member]
Derivative Instruments in Hedges, at Fair Value, Net [Abstract]
Interest rate and foreign exchange instruments	(147,000,000)	(165,000,000)
Not Designated as Hedging Instrument [Member] \| Current assets: Other [Member]
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract]
Foreign exchange instruments		0
Commodity contracts not subject to rate recovery	153,000,000	81,000,000
Associated offsetting commodity contracts not subject to rate recovery	(133,000,000)	(67,000,000)
Commodity contracts subject to rate recovery	64,000,000	28,000,000
Associated offsetting commodity contracts subject to rate recovery	(6,000,000)	0
Associated cash collateral commodity contracts subject to rate recovery	0	0
Not Designated as Hedging Instrument [Member] \| Other assets: Sundry [Member]
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract]
Foreign exchange instruments		0
Commodity contracts not subject to rate recovery	7,000,000	8,000,000
Associated offsetting commodity contracts not subject to rate recovery	(3,000,000)	(5,000,000)
Commodity contracts subject to rate recovery	233,000,000	101,000,000
Associated offsetting commodity contracts subject to rate recovery	(2,000,000)	(1,000,000)
Associated cash collateral commodity contracts subject to rate recovery	0	0
Not Designated as Hedging Instrument [Member] \| Current liabilities: Other [Member]
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract]
Foreign exchange instruments		(1,000,000)
Commodity contracts not subject to rate recovery	(164,000,000)	(72,000,000)
Associated offsetting commodity contracts not subject to rate recovery	133,000,000	67,000,000
Commodity contracts subject to rate recovery	(42,000,000)	(65,000,000)
Associated offsetting commodity contracts subject to rate recovery	6,000,000	0
Associated cash collateral commodity contracts subject to rate recovery	0	19,000,000
Not Designated as Hedging Instrument [Member] \| Deferred credits and other liabilities: Deferred credits and other [Member]
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract]
Foreign exchange instruments		0
Commodity contracts not subject to rate recovery	(6,000,000)	(6,000,000)
Associated offsetting commodity contracts not subject to rate recovery	3,000,000	5,000,000
Commodity contracts subject to rate recovery	(72,000,000)	(120,000,000)
Associated offsetting commodity contracts subject to rate recovery	2,000,000	1,000,000
Associated cash collateral commodity contracts subject to rate recovery	2,000,000	4,000,000
San Diego Gas and Electric Company [Member] \| Current assets: Other [Member]
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract]
Net amount presented on balance sheet	54,000,000	26,000,000
Additional margin posted for commodity contracts subject to rate recovery	28,000,000	16,000,000
Total	82,000,000	42,000,000
San Diego Gas and Electric Company [Member] \| Other assets: Sundry [Member]
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract]
Net amount presented on balance sheet	231,000,000	100,000,000
Additional margin posted for commodity contracts subject to rate recovery	0	0
Total	231,000,000	100,000,000
San Diego Gas and Electric Company [Member] \| Current liabilities: Other [Member]
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract]
Net amount presented on balance sheet	(32,000,000)	(54,000,000)
Additional margin posted for commodity contracts subject to rate recovery	0	0
Total	(32,000,000)	(54,000,000)
San Diego Gas and Electric Company [Member] \| Deferred credits and other liabilities: Deferred credits and other [Member]
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract]
Net amount presented on balance sheet	(68,000,000)	(118,000,000)
Additional margin posted for commodity contracts subject to rate recovery	0	0
Total	(68,000,000)	(118,000,000)
San Diego Gas and Electric Company [Member] \| Designated as Hedging Instrument [Member] \| Current assets: Other [Member]
Derivative Instruments in Hedges, at Fair Value, Net [Abstract]
Interest rate and foreign exchange instruments	0	0
San Diego Gas and Electric Company [Member] \| Designated as Hedging Instrument [Member] \| Other assets: Sundry [Member]
Derivative Instruments in Hedges, at Fair Value, Net [Abstract]
Interest rate and foreign exchange instruments	0	0
San Diego Gas and Electric Company [Member] \| Designated as Hedging Instrument [Member] \| Current liabilities: Other [Member]
Derivative Instruments in Hedges, at Fair Value, Net [Abstract]
Interest rate and foreign exchange instruments	(1,000,000)	(10,000,000)
San Diego Gas and Electric Company [Member] \| Designated as Hedging Instrument [Member] \| Deferred credits and other liabilities: Deferred credits and other [Member]
Derivative Instruments in Hedges, at Fair Value, Net [Abstract]
Interest rate and foreign exchange instruments	0	(3,000,000)
San Diego Gas and Electric Company [Member] \| Not Designated as Hedging Instrument [Member] \| Current assets: Other [Member]
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract]
Commodity contracts subject to rate recovery	60,000,000	26,000,000
Associated offsetting commodity contracts subject to rate recovery	(6,000,000)	0
Associated cash collateral commodity contracts subject to rate recovery	0	0
San Diego Gas and Electric Company [Member] \| Not Designated as Hedging Instrument [Member] \| Other assets: Sundry [Member]
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract]
Commodity contracts subject to rate recovery	233,000,000	101,000,000
Associated offsetting commodity contracts subject to rate recovery	(2,000,000)	(1,000,000)
Associated cash collateral commodity contracts subject to rate recovery	0	0
San Diego Gas and Electric Company [Member] \| Not Designated as Hedging Instrument [Member] \| Current liabilities: Other [Member]
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract]
Commodity contracts subject to rate recovery	(37,000,000)	(63,000,000)
Associated offsetting commodity contracts subject to rate recovery	6,000,000	0
Associated cash collateral commodity contracts subject to rate recovery	0	19,000,000
San Diego Gas and Electric Company [Member] \| Not Designated as Hedging Instrument [Member] \| Deferred credits and other liabilities: Deferred credits and other [Member]
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract]
Commodity contracts subject to rate recovery	(72,000,000)	(120,000,000)
Associated offsetting commodity contracts subject to rate recovery	2,000,000	1,000,000
Associated cash collateral commodity contracts subject to rate recovery	2,000,000	4,000,000
Southern California Gas Company [Member] \| Current assets: Other [Member]
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract]
Net amount presented on balance sheet	4,000,000	2,000,000
Additional margin posted for commodity contracts subject to rate recovery	5,000,000	1,000,000
Total	9,000,000	3,000,000
Southern California Gas Company [Member] \| Other assets: Sundry [Member]
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract]
Net amount presented on balance sheet	0	0
Additional margin posted for commodity contracts subject to rate recovery	0	0
Total	0	0
Southern California Gas Company [Member] \| Current liabilities: Other [Member]
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract]
Net amount presented on balance sheet	(5,000,000)	(2,000,000)
Additional margin posted for commodity contracts subject to rate recovery	0	0
Total	(5,000,000)	(2,000,000)
Southern California Gas Company [Member] \| Deferred credits and other liabilities: Deferred credits and other [Member]
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract]
Net amount presented on balance sheet	0	0
Additional margin posted for commodity contracts subject to rate recovery	0	0
Total	0	0
Southern California Gas Company [Member] \| Not Designated as Hedging Instrument [Member] \| Current assets: Other [Member]
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract]
Commodity contracts subject to rate recovery	4,000,000	2,000,000
Southern California Gas Company [Member] \| Not Designated as Hedging Instrument [Member] \| Other assets: Sundry [Member]
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract]
Commodity contracts subject to rate recovery	0	0
Southern California Gas Company [Member] \| Not Designated as Hedging Instrument [Member] \| Current liabilities: Other [Member]
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract]
Commodity contracts subject to rate recovery	(5,000,000)	(2,000,000)
Southern California Gas Company [Member] \| Not Designated as Hedging Instrument [Member] \| Deferred credits and other liabilities: Deferred credits and other [Member]
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net [Abstract]
Commodity contracts subject to rate recovery	$ 0	$ 0

FAIR VALUE MEASUREMENTS - RECURRING FAIR VALUE MEASURES (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Fair Value Measured at Net Asset Value Per Share [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Alternative investment	$ 10
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Nuclear decommissioning trusts - equity securities	411	$ 496
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	53	54
Nuclear decomissioning trusts - Municipal debt securities	269	250
Nuclear decommissioning trusts - Other debt securities	234	217
Nuclear decommissioning trusts - Total debt securities	556	521
Total nuclear decommissioning trusts	967	1,017
Assets fair value disclosure, total	1,334	1,188
Liabilities fair value disclosure, total	288	384
Fair Value, Measurements, Recurring [Member] \| Interest Rate and Foreign Exchange Instruments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	2	7
Derivative liability	150	217
Fair Value, Measurements, Recurring [Member] \| Commodity contracts not subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	24	17
Effect of netting and allocation of collateral	19	2
Derivative liability	34	6
Fair Value, Measurements, Recurring [Member] \| Commodity contracts subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	289	128
Effect of netting and allocation of collateral	33	17
Derivative liability	106	184
Effect of netting and allocation of collateral	(2)	(23)
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Nuclear decommissioning trusts - equity securities	407	491
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	43	45
Nuclear decomissioning trusts - Municipal debt securities	0	0
Nuclear decommissioning trusts - Other debt securities	0	0
Nuclear decommissioning trusts - Total debt securities	43	45
Total nuclear decommissioning trusts	450	536
Assets fair value disclosure, total	499	555
Liabilities fair value disclosure, total	0	0
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| Interest Rate and Foreign Exchange Instruments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0	0
Derivative liability	0	0
Fair Value, Measurements, Recurring [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 asset	0	5
Effect of netting and allocation of collateral	19	2
Derivative liability	0	0
Fair Value, Measurements, Recurring [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 asset	2	0
Effect of netting and allocation of collateral	28	12
Derivative liability	2	23
Effect of netting and allocation of collateral	(2)	(23)
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Nuclear decommissioning trusts - equity securities	4	5
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	10	9
Nuclear decomissioning trusts - Municipal debt securities	269	250
Nuclear decommissioning trusts - Other debt securities	234	217
Nuclear decommissioning trusts - Total debt securities	513	476
Total nuclear decommissioning trusts	517	481
Assets fair value disclosure, total	552	502
Liabilities fair value disclosure, total	189	230
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| Interest Rate and Foreign Exchange Instruments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	2	7
Derivative liability	150	217
Fair Value, Measurements, Recurring [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 asset	24	12
Effect of netting and allocation of collateral	0	0
Derivative liability	34	6
Fair Value, Measurements, Recurring [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 asset	9	2
Effect of netting and allocation of collateral	0	0
Derivative liability	5	7
Effect of netting and allocation of collateral	0	0
Fair Value, Measurements, Recurring [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 decomissioning trusts - Municipal debt securities	0	0
Nuclear decommissioning trusts - Other debt securities	0	0
Nuclear decommissioning trusts - Total debt securities	0	0
Total nuclear decommissioning trusts	0	0
Assets fair value disclosure, total	283	131
Liabilities fair value disclosure, total	99	154
Fair Value, Measurements, Recurring [Member] \| Level 3 [Member] \| Interest Rate and Foreign Exchange Instruments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0	0
Derivative liability	0	0
Fair Value, Measurements, Recurring [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 asset	0	0
Effect of netting and allocation of collateral	0	0
Derivative liability	0	0
Fair Value, Measurements, Recurring [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 asset	278	126
Effect of netting and allocation of collateral	5	5
Derivative liability	99	154
Effect of netting and allocation of collateral	0	0
San Diego Gas and Electric Company [Member] \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Nuclear decommissioning trusts - equity securities	411	496
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	53	54
Nuclear decomissioning trusts - Municipal debt securities	269	250
Nuclear decommissioning trusts - Other debt securities	234	217
Nuclear decommissioning trusts - Total debt securities	556	521
Total nuclear decommissioning trusts	967	1,017
Assets fair value disclosure, total	1,280	1,159
Liabilities fair value disclosure, total	100	172
San Diego Gas and Electric Company [Member] \| Fair Value, Measurements, Recurring [Member] \| Commodity contracts subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	285	126
Effect of netting and allocation of collateral	28	16
Derivative liability	101	182
Effect of netting and allocation of collateral	(2)	(23)
San Diego Gas and Electric Company [Member] \| Fair Value, Measurements, Recurring [Member] \| Interest rate instruments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability	1	13
San Diego Gas and Electric Company [Member] \| Fair Value, Measurements, Recurring [Member] \| Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Nuclear decommissioning trusts - equity securities	407	491
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	43	45
Nuclear decomissioning trusts - Municipal debt securities	0	0
Nuclear decommissioning trusts - Other debt securities	0	0
Nuclear decommissioning trusts - Total debt securities	43	45
Total nuclear decommissioning trusts	450	536
Assets fair value disclosure, total	474	547
Liabilities fair value disclosure, total	0	0
San Diego Gas and Electric Company [Member] \| Fair Value, Measurements, Recurring [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 asset	1	0
Effect of netting and allocation of collateral	23	11
Derivative liability	2	23
Effect of netting and allocation of collateral	(2)	(23)
San Diego Gas and Electric Company [Member] \| Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| Interest rate instruments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability	0	0
San Diego Gas and Electric Company [Member] \| Fair Value, Measurements, Recurring [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Nuclear decommissioning trusts - equity securities	4	5
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	10	9
Nuclear decomissioning trusts - Municipal debt securities	269	250
Nuclear decommissioning trusts - Other debt securities	234	217
Nuclear decommissioning trusts - Total debt securities	513	476
Total nuclear decommissioning trusts	517	481
Assets fair value disclosure, total	523	481
Liabilities fair value disclosure, total	1	18
San Diego Gas and Electric Company [Member] \| Fair Value, Measurements, Recurring [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 asset	6	0
Effect of netting and allocation of collateral	0	0
Derivative liability	0	5
Effect of netting and allocation of collateral	0	0
San Diego Gas and Electric Company [Member] \| Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| Interest rate instruments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability	1	13
San Diego Gas and Electric Company [Member] \| Fair Value, Measurements, Recurring [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 decomissioning trusts - Municipal debt securities	0	0
Nuclear decommissioning trusts - Other debt securities	0	0
Nuclear decommissioning trusts - Total debt securities	0	0
Total nuclear decommissioning trusts	0	0
Assets fair value disclosure, total	283	131
Liabilities fair value disclosure, total	99	154
San Diego Gas and Electric Company [Member] \| Fair Value, Measurements, Recurring [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 asset	278	126
Effect of netting and allocation of collateral	5	5
Derivative liability	99	154
Effect of netting and allocation of collateral	0	0
San Diego Gas and Electric Company [Member] \| Fair Value, Measurements, Recurring [Member] \| Level 3 [Member] \| Interest rate instruments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability	0	0
Southern California Gas Company [Member] \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value disclosure, total	9	3
Liabilities fair value disclosure, total	5	2
Southern California Gas Company [Member] \| Fair Value, Measurements, Recurring [Member] \| Commodity contracts subject to rate recovery [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	4	2
Effect of netting and allocation of collateral	5	1
Derivative liability	5	2
Southern California Gas Company [Member] \| Fair Value, Measurements, Recurring [Member] \| Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value disclosure, total	6	1
Liabilities fair value disclosure, total	0	0
Southern California Gas Company [Member] \| Fair Value, Measurements, Recurring [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 asset	1	0
Effect of netting and allocation of collateral	5	1
Derivative liability	0	0
Southern California Gas Company [Member] \| Fair Value, Measurements, Recurring [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value disclosure, total	3	2
Liabilities fair value disclosure, total	5	2
Southern California Gas Company [Member] \| Fair Value, Measurements, Recurring [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 asset	3	2
Effect of netting and allocation of collateral	0	0
Derivative liability	5	2
Southern California Gas Company [Member] \| Fair Value, Measurements, Recurring [Member] \| Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets fair value disclosure, total	0	0
Liabilities fair value disclosure, total	0	0
Southern California Gas Company [Member] \| Fair Value, Measurements, Recurring [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 asset	0	0
Effect of netting and allocation of collateral	0	0
Derivative liability	$ 0	$ 0

REVENUES - PERFORMANCE OBLIGATIONS (Details) $ in Millions	Dec. 31, 2018 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues to be recognized	$ 540
Revenues to be recognized, period of recognition	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues to be recognized	$ 534
Revenues to be recognized, period of recognition	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues to be recognized	$ 529
Revenues to be recognized, period of recognition	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues to be recognized	$ 528
Revenues to be recognized, period of recognition	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues to be recognized	$ 516
Revenues to be recognized, period of recognition	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues to be recognized	$ 2,813
Revenues to be recognized, period of recognition
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues to be recognized	$ 5,460
San Diego Gas and Electric Company [Member] \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues to be recognized	$ 3
Revenues to be recognized, period of recognition	1 year
San Diego Gas and Electric Company [Member] \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues to be recognized	$ 3
Revenues to be recognized, period of recognition	1 year
San Diego Gas and Electric Company [Member] \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues to be recognized	$ 3
Revenues to be recognized, period of recognition	1 year
San Diego Gas and Electric Company [Member] \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues to be recognized	$ 3
Revenues to be recognized, period of recognition	1 year
San Diego Gas and Electric Company [Member] \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues to be recognized	$ 3
Revenues to be recognized, period of recognition	1 year
San Diego Gas and Electric Company [Member] \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues to be recognized	$ 52
Revenues to be recognized, period of recognition
San Diego Gas and Electric Company [Member] \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues to be recognized	$ 67