Company: SREA
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001032208-25-000012
Chunk: 18

Company: SEMPRA
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 18
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 sold, which we discuss below

▪$230 million lower revenues from incremental and balanced capital projects that are now in CPUC-authorized revenues as a result of the 2024 GRC FD, offset by higher authorized cost of capital

▪$90 million lower revenues associated with refundable programs, which are fully offset in O&M

▪$24 million lower franchise fee revenues

▪$7 million lower regulatory awards approved by the CPUC

Offset by:

▪$317 million higher CPUC-authorized revenues in 2024, including certain incremental and balanced capital projects that are now in CPUC-authorized revenues as a result of the 2024 GRC FD and higher authorized cost of capital

▪$253 million higher regulatory revenues primarily from the release of a tax regulatory liability for gas repairs expenditures as a result of the 2024 GRC FD

▪$26 million lower regulatory revenues in 2023 from the recognition of previously unrecognized income tax benefits pertaining to gas repairs expenditures, which are offset in income tax (expense) benefit

▪$6 million higher revenues from higher non-service components of net periodic benefit cost, which fully offsets in other income (expense), net

In 2024 compared to 2023, SoCalGas’ cost of natural gas decreased by $2.3 billion to $959 million primarily due to: 

▪$2.1 billion lower average natural gas prices 

▪$201 million lower volumes driven by weather

Operation and Maintenance

In 2024 compared to 2023, SoCalGas’ O&M decreased by $30 million (1%) remaining at $2.8 billion due to:

▪$90 million lower expenses associated with refundable programs, which costs are recovered in revenue

Offset by:

▪$40 million higher non-refundable operating costs

▪$20 million impairment from disallowed capital costs in the 2024 GRC FD

Other Income (Expense), Net

In 2024 compared to 2023, SoCalGas’ other income, net, was $25 million compared to other expense, net, of $4 million primarily due to:

▪$18 million higher AFUDC equity

▪$15 million higher net interest income on regulatory balancing accounts

Offset by:

▪$6 million higher non-service components of net periodic benefit cost

Interest Expense

In 2024 compared to 2023, SoCalGas’ interest expense increased by $38 million (