Company: SREA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001032208-25-000065
Chunk: 315

Company: SEMPRA
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 315
---
44 $— $(3)$43 (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 InformationSDG&EThe table below sets forth reconciliations of changes in the fair value of CRRs classified as Level 3 in the fair value hierarchy for Sempra and SDG&E.LEVEL 3 RECONCILIATIONS(1)(Dollars in millions) Three months ended September 30, 20252024Balance at July 1$3 $6 Realized and unrealized gains (losses), net3 (3)Allocated transmission instruments2 1 Settlements(2)2 Balance at September 30$6 $6 Change in unrealized gains (losses) relating to instruments still held at September 30$2 $— Nine months ended September 30,20252024Balance at January 1$4 $10 Realized and unrealized gains (losses), net1 (6)Allocated transmission instruments5 1 Settlements(4)1 Balance at September 30$6 $6 Change in unrealized gains (losses) relating to instruments still held at September 30$(1)$(1)(1)    Excludes the effect of the contractual ability to settle contracts under master netting agreements and cash collateral.Realized gains and losses associated with CRRs, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. Because unrealized gains and losses are recorded as regulatory assets and liabilities, they do not affect earnings. Inputs used to determine the fair value of CRRs are reviewed and compared with market conditions to determine reasonableness.

75

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 INPUTSSettlement yearPrice per MWhMedian price per MWh2025$(