Company: SREA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001032208-25-000027
Chunk: 133

Company: SEMPRA
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 2
Chunk 133
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34 million higher expenses associated with refundable programs, which costs are recovered in revenue

Offset by:

▪$5 million lower non-refundable operating costs

Income Taxes

INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES(Dollars in millions) Three months ended March 31, 20252024SDG&E:Income tax expense$14 $40 Income before income taxes$295 $263 Effective income tax rate5 %15 %

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Table of Contents

SDG&E records regulatory liabilities for benefits that will be flowed through to customers in the future.

In the three months ended March 31, 2025 compared to the same period in 2024, SDG&E’s income tax expense decreased by $26 million primarily due to: 

▪higher income tax benefit in 2025 from higher ITCs from standalone energy storage projects

Offset by:

▪higher pretax income

We discuss herein SoCalGas’ results of operations and significant changes in earnings, revenues and costs for the three months ended March 31, 2025 compared to the same period in 2024.

Due to the delay in the issuance of the CPUC’s final decision in the SoCalGas 2024 GRC, SoCalGas recorded revenues in the first three quarters of 2024 based on levels authorized for 2023 under the 2019 GRC. In December 2024, the CPUC approved an FD in the 2024 GRC, effective retroactive to January 1, 2024, for which SoCalGas recorded the retroactive impacts in the fourth quarter of 2024. SoCalGas’ authorized base revenues for the first quarter of 2025 are based on the revenues authorized for the 2024 test year plus the amount authorized for attrition for 2025. We provide additional information on the 2024 GRC FD in Note 4 of the Notes to Condensed Consolidated Financial Statements in this report and in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report.

RESULTS OF OPERATIONS

RESULTS OF OPERATIONS(Dollars in millions)

In the three months ended March 31, 2025 compared to the same period in 2024, the increase in earnings of $84 million (23%) was primarily due to:

▪$54 million higher income tax benefits primarily from flow-through items, including gas repairs tax benefits, which in the