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United States securities and exchange commission logo
August 10, 2021
Peter Wall
Senior Vice President, Controller and Chief Accounting Officer
SEMPRA ENERGY
488 8th Avenue
San Diego , California 92101
Re: Sempra Energy
Form 10-K for the
Fiscal Year Ended December 31, 2020
Filed February 25,
2021
File No. 001-14201
Dear Mr. Wall :
We have limited our review of your filing to the financial
statements and related
disclosures and have the following comments. In some of our comments, we
may ask you to
provide us with information so we may better understand your disclosure.
Please respond to these comments within ten business days by
providing the requested
information or advise us as soon as possible when you will respond. If
you do not believe our
comments apply to your facts and circumstances, please tell us why in
your response.
After reviewing your
response to these comments, we may have additional comments.
Form 10-K for the Fiscal Year Ended December 31, 2020
Note 1. Significant Accounting Policies and Other Financial Data
Variable Interest Entities
CFIN, page F-43
1. Sempra Energy entered
into a Support Agreement for the benefit of CFIN which contains
a financial guarantee
that represents a variable interest with a maximum exposure to loss
of $979 million. Tell
us how you determined that you were not the primary beneficiary
and why you are not
required to consolidate CFIN.
Note 4. Regulatory Matters, page F-62
2. Revise your disclosure
to clarify for investors how the carrying charge, or return, is
calculated on your
regulatory assets. Also, revise to disclose the remaining amount of
regulatory assets not
earning a return during the recovery period and the
remaining recovery
period applicable to them. Refer to 980-340-50-1.
Peter Wall
SEMPRA ENERGY
August 10, 2021
Page 2
Note 16. Commitments and Contingencies
Aliso Canyon Natural Gas Storage Facility Gas Leak , page F-134
3. We note your disclosure that the cost estimate related to the Aliso
Canyon Natural Gas
Storage Facility Gas Leak does not include litigation, regulatory
proceedings or regulatory
costs to the extent it is not possible to predict at this time the
outcome of these actions or
reasonably estimate the costs to defend or resolve the actions or the
amount of damages.
Please disclose an estimated range of reasonably possible losses in
excess of the amounts
accrued. Refer to ASC 450-20-50-4.
In closing, we remind you that the company and its management are
responsible for the
accuracy and adequacy of their disclosures, notwithstanding any review,
comments, action or
absence of action by the staff.
You may contact Robert Babula, Staff Accountant at (202) 551-3339, or Gus
Rodriguez,
Branch Chief at (202) 551-3752 with any questions.
FirstName LastNamePeter Wall Sincerely,
Comapany NameSEMPRA ENERGY
Division of
Corporation Finance
August 10, 2021 Page 2 Office of
Energy & Transportation
FirstName LastName